Advanced Micro Devices Inc (AMD)

[Maui]

OT, I have a question on dividend payments.

from money.CNN.com :
report on the Financial Times Web site that Microsoft (MSFT: up $0.92 to $27.42, Research, Estimates), sitting on a cash stash of $46 billion, is considering giving $10 billion back to its shareholders in the form of a special dividend.
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This is roughly $1 per share of microsoft!

Would anyone enlighten me about how dividends work ?
1. Do I have to a owner for a particular time to be eligible for it ? Do I have to be an owner on a particular day to get dividends ?

2. What if I write deep in the money covered calls and increase the number of shares by buying more sharses of the stocks ? Do I get twice the dividend ? For example, instead of buying 1000 shares of MSFT (with no covered calls), I decide to buy 2000 shares of MSFT (and 20 contracts of in-the-money Jan 15 2006 covered calls), do I get twice the dividends ?

Thanks

Maui.