Replies to post #4509 on Investor Help (NO Ihub questions)

[Newly2b]

Short answer: one must own the stock at least one day prior to the ex-div date to be entitled to receive the dividend, but not on the record date itself or on the payout date.

To elucidate, due to the T-3 rule (3 days to settle a trade), one must buy the stock at least 3 days prior to the record date in order to be considered a shareholder entitled to the dividend. Again due to the T-3 ruling, one can immediately sell one's shares on the ex-div date and still receive the dividend since that sale trade will not be settled until the day after the record date. The payout date can be long after the ex-div and record dates, and one does not need to own the stock on that date.


Newly