Newbie dividend question - Aussie Stock Forums

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  1. #1

    Default Newbie dividend question

    Hi All,

    I have decided to buy shares for dividend.

    For example, BSL the Ex Dividend Date is 24/9/2007.
    That means if I buy before 24/9/2007 I should get the dividend, right?

    What happen if i buy the $10000 worth of shares on 23/9/2007 and sell it off on 23/9/2007 before closing of trading hours? Do I still get the dividend? Are there any requirements, like I have to stay until the end of trading hours to get dividend?

    Is it as simple as this?
    If i buy $10,000 BSL @ 10.48/share, that means I should be able to buy

    951 * 0.26 (Dividend) = ~$247. That's the amount I should be able to get, right?


  2. #2

    Exclamation Re: Newbie dividend question

    Is my question that hard ?

    ~50 people looked at it and no one answer

  3. #3

    Default Re: Newbie dividend question

    Hi overrule,

    You need to be holding the stock at the end of close on the 23rd to qualify for the dividend. If you buy and sell on the same day, whoever buys your stock will get the dividend. You just get the profit/loss from your trade.

    If you hold and qualify for the dividend, you will receive the $247 in a couple of months, via bank account, cheque, dividend re-investment etc


  4. #4

    Default Re: Newbie dividend question

    In addition to what Chef said, the day of ex dividend, the share price will tend to move in line with the amount of the dividend, so on a flat day, it is likely to lose the $0.26 it gave you in a dividend, on a down day, it will loss more.

    So if you buy and sell quickly you arew swapping an income stream for a capital loss. The capital loss can be used to offset a capital gain, if you have any, otherwise it does nothing for you.

    Also if the dividend is franked, ie the company has already paid tax on it, you need to hold the share for (don't quote me on this) 45 days, otherwise you are not eligible for the franking credits and you will need to pay more tax.

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