Search results
Results from the WOW.Com Content Network
I'm talking about not paying attention to the ex-dividend date of a stock I am I know I have, and have wanted to knock my head against the wall for doing it. Don't Lose Track of the Ex-Dividend Date
Thus the key date for a stock purchase is the ex-dividend date: a purchase on that date (or after) will be ex (outside, without right to) the dividend. If, for whatever reason, a share transfer prior to the ex-dividend date is not recorded on the register in time, the seller is obligated to repay the dividend to the buyer when he receives it.
Ex-dividend date: This is essentially a cut-off date. In other words, if you buy shares on or after this date, you won’t get the next dividend the company is scheduled to pay.
Dividend stripping is the practice of buying shares a short period before a dividend is declared, called cum-dividend, and then selling them when they go ex-dividend, when the previous owner is entitled to the dividend. On the day the company trades ex-dividend, theoretically the share price drops by the amount of the dividend.
The stock is expected to become ex-dividend 1 business day(s) before the record date. Churchill Downs, whose current dividend payout is $0.62, has an ex-dividend date set at December 3, 2020.
Selling your stock on the ex-dividend date or after, means selling it without the dividend. The buyer of you stock will not receive the latest dividend payment pay-out, but would receive the next dividend pay-out if held one day prior to the next ex-dividend date.
One Liberty Properties has an ex-dividend date planned for December 16, 2020. The company's current dividend payout sits at $0.45. That equates to a dividend yield of 9.84% at current price levels ...
For instance, on the day before an ex-dividend date, it may make sense to exercise an equity call option early in order to collect the dividend. In general, equity call options should only be exercised early on the day before an ex-dividend date, and then only for deep in-the-money options.