If I sell my shares on the ex-date for a dividend, do I get to receive the dividend?

By Intelligent Investor · 9 Feb 2001

By Intelligent Investor ·
9 Feb 2001

The answer is yes, you will receive the dividend, but for the benefit of those unsure of what an ex-date is, this issue we look at the mechanism of dividend payments using as an example the 2000/2001 interim dividend for BHP, an unfranked payment of 25 cents a share.

When a company declares a dividend, three dates are fixed. The most satisfactory of these is the 'date payable', when the cheques are mailed, however the more important is the 'record date', sometimes the 'books closed' date. This is the date on which the company determines who is paid what. The 'ex-date' is exactly four business days before the record date. In the case of the BHP dividend, the ex-date was Monday, 13 November, 2000, and the record date was Friday, 17 November.

IMPORTANT: Intelligent Investor is published by InvestSMART Financial Services Pty Limited AFSL 226435 (Licensee). Information is general financial product advice. You should consider your own personal objectives, financial situation and needs before making any investment decision and review the Product Disclosure Statement. InvestSMART Funds Management Limited (RE) is the responsible entity of various managed investment schemes and is a related party of the Licensee. The RE may own, buy or sell the shares suggested in this article simultaneous with, or following the release of this article. Any such transaction could affect the price of the share. All indications of performance returns are historical and cannot be relied upon as an indicator for future performance.

If I sell my shares on the ex-date for a dividend, do I get to receive the dividend?

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If I sell my shares on the ex-date for a dividend, do I get to receive the dividend?

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