chrisdex

[dex47]

could someone answer me a question about share buying around the time of a company going ex dividend? I wanted to sell some Natwest shares on 13th August which was the day they went ex dividend. I rang customer helpline to ask whether I would still get the dividend if I traded on that day. I was told I would still get the dividend so I sold the shares. I had some doubts because of the language difficulty so I rang again and spoke to another operative who said I would only get the dividend if I still held the shares at the close of business on that date (13th) and therefore I would NOT get the dividend. He apologised for the earlier advice which was wrong. He said if I sold any shares in the future I should deal several days before the ex dividend date to make sure I did not loose the dividend. I am confused what to do in the future and am most concerned when  I cannot trust the advice given on the helpline

 

[ArvinIG]

22 hours ago, dex47 said:

could someone answer me a question about share buying around the time of a company going ex dividend? I wanted to sell some Natwest shares on 13th August which was the day they went ex dividend. I rang customer helpline to ask whether I would still get the dividend if I traded on that day. I was told I would still get the dividend so I sold the shares. I had some doubts because of the language difficulty so I rang again and spoke to another operative who said I would only get the dividend if I still held the shares at the close of business on that date (13th) and therefore I would NOT get the dividend. He apologised for the earlier advice which was wrong. He said if I sold any shares in the future I should deal several days before the ex dividend date to make sure I did not loose the dividend. I am confused what to do in the future and am most concerned when  I cannot trust the advice given on the helpline

 

HI @dex47,

You will need to hold the shares on ex-date to be eligible for the dividends. If you sold you shares before ex-date you won't be eligible for the dividends.

More details here.

"Companies can pay several dividends a year. Prior to each dividend payment date, the company will set a record date — the date on which a shareholder must be recorded as such and therefore be eligible to receive the dividend payment. Once the record date has been set, than the ex-dividend date is set. It is typically a couple of days before the record date, but the exact timing depends on the rules of the stock market on which the company’s stock is listed. It becomes a marker date for investors. When buying stock, it normally takes about three days for the purchase to be settled and recorded and therefore investors know they must buy stock before the ex-dividend date if they are to get the next dividend payment by that company".

I hope that it helps.

All the best - Arvin