I checked with E-Trade today ...
I grew tired of all the bashing and misinformation about the dividend and the dates, so I called E-Trade today and was on the phone with them for 15 minutes as the back office got involved in researching and confirming the truth about this stock and the dividend.
E-Trade confirmed that once you purchase the stock, it technically is yours. In this case, they do not see or know of the ex-dividend date and it is probably because of the following:
"The second method, for dividends or distributions that are 25% or greater of the value of the stock, sets the ex-dividend date as the first business day after the payment date, making that the date the stock goes ex-dividend with the price adjusted down. In this case, the regulation provides that the owner of record who sells the stock before the ex-dividend date has to relinquish the dividend to the buyer. This is to prevent the seller from receiving the value of the dividend twice."
They told me that since I purchased the bulk of my shares on the 26th that I am in. Absolutely. No settlement BS. If the normal ex-dividend date was in effect, then that date would be April 27th and shares purchased on the 27th and 28th might not be considered in time. However, if the above rule applies, then the ex-dividend date is May 27th.
Bottom line ... and E-Trade confirms that this goes for all brokers ... if you purchased by April 26th, you own the shares. Period. The deadline was not the 25th. If the ex-dividend date is May 27th, then purchases made on April 27th and 28th also qualified.
The confusion about the ex-dividend date is probably why the stock price dropped on Thursday. However, the second method for dividends is probably the real situation and shares purchased on April 27th and 28th likely qualify for the dividend.
As for the technicality regarding purchasing, I will believe E-Trade over a guy named Wayne anyday.
Bullish
