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Re: Xtremetz1 post# 197592

Friday, 04/26/2024 6:57:50 PM

Friday, April 26, 2024 6:57:50 PM

Post# of 198135
Sorry but that is not how a special dividend works. I sold the rest of my shares today so I want be entitled to the dividend unless I rebuy before the ex- date which is usually one business day after the pay date for a special dividend. In my experience with special dividends I learned the hard way the Record date does not matter with a special dividend. Only the ex-date.
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.

Sometimes a company pays a dividend in the form of stock rather than cash. The stock dividend may be additional shares in the company or in a subsidiary being spun off. The procedures for stock dividends may be different from cash dividends. The ex-dividend date is set the first business day after the stock dividend is paid (and is also after the record date).
If you sell your stock before the ex-dividend date, you also are selling away your right to the stock dividend. Your sale includes an obligation to deliver any shares acquired as a result of the dividend to the buyer of your shares, since the seller will receive an I.O.U. or "due bill" from his or her broker for the additional shares. Thus, it is important to remember that the day you can sell your shares without being obligated to deliver the additional shares is not the first business day after the record date, but usually is the first business day after the stock dividend is paid.
https://www.investor.gov/introduction-investing/investing-basics/glossary/ex-dividend-dates-when-are-you-entitled-stock-and
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