Friday, September 23, 2011

How long must one hold the stock in order to actually be paid the advertised dividend?

Let's say a stock, XYZ is the ticker, pays a 7% dividend. I buy 100 shares at $100/share 2 months before the ex dividend date, and the stock price does not change any. How much dividend [or "yield"] will I be paid by the stock at the payment date?|||Some companies pay out quaterly, semi-annual or annually.


You must own the stock prior to the shares held on published date. Look at the investor's relations information on the company web site to see the date when the next dividend is paid. You will only receive the dividend for the shares held on prior to date (mm/dd/yy) date.|||How often does the stock pay the div? Annual, semi annual, quarterly, you did not state that.|||That depends on the company's policy....some are annual, some semi-annual and some quarterly. Let's say for the example you gave, the company pays an annual dividend only, then you will get $7/share or $700.





Now, if the company pays the dividend quarterly, you will get 1.75% (or $1.75/share or $175) per quarter.

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