Question for investors...

Shagster · Post by **Shagster** » Fri Nov 25, 2005 1:24 pm

I just have one question I can't find the answer to. Dividends.

If an annual dividend is paid on Dec. 2 and you owned the stock from Jan. 2 to July 2 earlier that year (in which time no dividends were payed). Do you get half that dividend for having owned the stock for half of the fiscal year even though you didn't own it on the day the dividend was paid?

knightmare · Post by **knightmare** » Fri Nov 25, 2005 1:31 pm

* Growth funds generally pay dividends semi-annually.
* Growth-and-income funds generally pay dividends quarterly.
* Equity-income and balanced funds generally pay dividends quarterly.
* Bond funds generally pay dividends monthly. Tax-exempt bond funds generally pay dividends monthly.
* Money market funds generally accrue dividends daily and pay them monthly.

Which one is yours? Which fund are you in?

Shagster · Post by **Shagster** » Fri Nov 25, 2005 1:35 pm

I don't know. The stock in question though is Microsoft which is going to pay its next dividend on Dec 8. I just used annual as an example and am not sure if they pay it more/less often.

John · Post by **John** » Fri Nov 25, 2005 2:00 pm

Microsoft issues dividends 4x a year,

Ex. Dividend Date 11/15/2005
Dividend Pay Date 12/08/2005
Dividend Rate 0.0800

https://www.speedguide.net/forums/viewtopic.php?t=187271

poptom · Post by **poptom** » Fri Nov 25, 2005 7:43 pm

You need to have owned the stock on November 15. If you sold the stock in July, they don't owe you nuttin.

Kip Patterson · Post by **Kip Patterson** » Fri Nov 25, 2005 7:46 pm

To expand on Poptom's answer - it is the ex-dividend date that determines who gets the entire dividend. On that date stocks commonly decrease iin value by the amount of the dividend.

Shagster · Post by **Shagster** » Sat Nov 26, 2005 1:08 am

Kip Patterson wrote:To expand on Poptom's answer - it is the ex-dividend date that determines who gets the entire dividend. On that date stocks commonly decrease iin value by the amount of the dividend.

Ok. So do I need to own the stock on that date through the date the dividend is issued? Or just on that ex date? It doesn't seem right that if you own stock on that one day you will get the dividend?

I bought microsoft on 10/10/05

Kip Patterson · Post by **Kip Patterson** » Sat Nov 26, 2005 1:49 am

Just on the ex-dividend date.

If a stock is at $20, and the dividend is $1, then the day after the ex-dividend it will decline to $19. In other words, the market considers the dividend to be part of the value of the stock.

Shagster · Post by **Shagster** » Sat Nov 26, 2005 2:30 am

Kip Patterson wrote:Just on the ex-dividend date.

If a stock is at $20, and the dividend is $1, then the day after the ex-dividend it will decline to $19. In other words, the market considers the dividend to be part of the value of the stock.

Ok. So I can sell now and they will still send me the dividend is what I'm getting from that. Thanks

poptom · Post by **poptom** » Sat Nov 26, 2005 8:56 am

Shaggy wrote:Ok. So I can sell now and they will still send me the dividend is what I'm getting from that. Thanks

Yes. They will send you your 8 cents on December 8th.