dumb question

tomdemaine · #1 10-10-2005, 08:01 PM

If I hold a stock when do I get the dividend? Is it all on one day or spread out over the year? If it's all on one day why don't people just buy loads of the stock the day before the dividend comes out?

Sorry if this is really dumb I don't get it.

Sniper · #2 10-10-2005, 09:10 PM

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If I hold a stock when do I get the dividend? Is it all on one day or spread out over the year? If it's all on one day why don't people just buy loads of the stock the day before the dividend comes out?

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Dividends are paid out when the company declares them... usually quarterly, sometimes monthly, sometimes on odd schedules.

Large companies with huge dollars play the dividend capture game, as there is generally a small amount of overlay.

The bottom line though is that when a company pays a dividend, the stocks price is adjusted for the dividend!

tomdemaine · #3 10-10-2005, 09:23 PM

Say I'm a tiny investor. Sub $1000 per stock will I get the dividend direct to my stock trading account at say squaregain or do I have to apply for it give bank details to the company etc?

Sniper · #4 10-10-2005, 11:59 PM

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Say I'm a tiny investor. Sub $1000 per stock will I get the dividend direct to my stock trading account at say squaregain or do I have to apply for it give bank details to the company etc?

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The dividend will appear in your brokerage account on the payment date.

Rooster71 · #5 10-11-2005, 01:37 PM

[ QUOTE ]
If I hold a stock when do I get the dividend? Is it all on one day or spread out over the year? If it's all on one day why don't people just buy loads of the stock the day before the dividend comes out?

Sorry if this is really dumb I don't get it.

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I can't remember the term for it, but in order to collect the dividend you have to have owned the stock on xxxx date. When the dividend is declared, the company will also state the payment date, and other relevant info.