Enzolytics Inc (ENZC)

[29YEARINVESTOR]

What is the 25% rule for special dividends?
If the dividend is 25% or more of the stock value, special rules apply to the determination of the ex-dividend date. In these cases, the ex-dividend date will be deferred until one business day after the dividend is paid.
I learned the difference between a regular dividend where the record date matters and a special dividend where the record date does not matter the hard way.
I was ill advised by a general manager at Keegan and Morgan on my special ATT wireless share dividend. That told me I had to buy 3 days before the record date and I could sell after the record date but before the pay date. I did as he advised and the person that bought my shares on the pay date received my dividend shares. Because with a special dividend the ex-date is after the dividend pay date not before. You have to hold them until the Ex-date which is usually 1 business day after the pay date with a special dividend unlike a cash dividend which is before.
I googled the SEC rules and they told me the difference.
With a regular cash dividend.
Under normal circumstances , the ex-date is two days prior to the record date which is the official date that the stock owner is, in fact, a shareholder of that company. Since it takes three days to settle a stock purchase, shares must be purchase three days before the record date. After that, two days before the record date, the stock goes ex-dividend and shares purchased from that point forward are no longer eligible to receive the dividend. The actual payment date is sometime after the record date. These standard rules apply to standard dividends and special one-time cash dividends which distribute less than 25% of the value of one share.
The difference
Ex-dividend date special rules
When the special cash dividend distribution or stock dividend is an amount greater than 25% of the value of one share the ex-date is set the day after the payment date. Therefore, if a stock is purchased after the record date but before the ex-date, the dividend is still captured. The ex-date always determines who receives the dividend, the stock buyer or seller.
https://www.thebluecollarinvestor.com/ex-dividend-dates-rules-for-standard-and-special-dividends/