If you intend to sell an entire holding of a stock but sell it on or after the ex-dividend date, you could end up holding a few residual shares you didn't count on. To check out dividend information on your stocks, enter a stock name or symbol into the search feature at the top right of any screen on the site. Select a stock and you will be directed to the Detailed Quote page where you'll find dividend information such as frequency, yield, pay date and ex-dividend date listed.
Remember, a high dividend yield alone does not measure up to a great investment, so it may be prudent to dig a little deeper. Investors are responsible for their own investment decisions. Used under licence. It is your responsibility to ensure that any associated tax requirements or obligations are satisfied. RBC Direct Investing will purchase whole shares only. Some exclusions may apply. Some eligible securities such as preferred shares and voting class common shares will not reinvest into additional units of the same security but rather the underlying non-voting common share or similar security.
The views and opinions expressed in this publication are for your general interest and do not necessarily reflect the views and opinions of RBC Direct Investing. Furthermore, the products, services and securities referred to in this publication are only available in Canada and other jurisdictions where they may be legally offered for sale.
If you are not currently resident of Canada, you should not access the information available on the RBC Direct Investing website. We ask StockCalc founder Brian Donovan about the fine art of digging into a company's fundamentals. This means anyone who bought the stock on Friday or after would not get the dividend. At the same time, those who purchase before the ex-dividend date on Friday will receive the dividend. With a significant dividend, the price of a stock may fall by that amount on the ex-dividend date.
In these cases, the ex-dividend date will be deferred until one business day after the dividend is paid. Sometimes a company pays a dividend in the form of stock rather than cash. The stock dividend may be additional shares in the company or in a subsidiary being spun off.
The procedures for stock dividends may be different from cash dividends. The ex-dividend date is set the first business day after the stock dividend is paid and is also after the record date.
If you're counting on those dividends for income , it might take a few more days to transfer that cash out of your brokerage account and into your banking accounts , so factor the additional time in for budgeting purposes. There are also some stocks that don't pay in cash, instead paying in more shares of a company's stock. This is rare, but it does happen, so make sure you verify whether you're getting a cash or stock dividend. Generally companies make it clear if the dividend is not being paid in cash.
Again, if you want cash -- either as dividend income or to invest in other stocks -- a stock dividend means it will take a little longer to get your hands on actual money.
You'll have to sell the shares, then wait for the trade to settle -- several more business days -- before your broker will let you take the cash out of your account. Discounted offers are only available to new members. Stock Advisor will renew at the then current list price. Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
Investing Best Accounts. Stock Market Basics. Stock Market. Personal Share Trading The share market explained How dividends work. How dividends work. The mechanics of dividends Declaration Companies announce to the market when they intend to pay a dividend, and how much that dividend will be.
Ex-dividend date As part of its dividend announcement, the company will state the 'ex dividend' date. Payment date The payment date is, as the name suggests, the date the company pays the dividend to shareholders. Franking credits In Australia, dividends often come with bonus tax credits, called franking or imputation credits. Dividend Reinvestment Plans DRPs Some companies give shareholders the option to reinvest dividends in the form of additional shares in the company, rather than in cash.
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