Payment of dividends

How long do you have to hold a stock after dividend is paid and from which date does it apply? Many thanks.

A: If you own it on the last day it trades ‘cum dividend’, then you will get it. If you buy it ex-dividend, you won’t.

Payment is generally 30 to 45 days later.

For example,  National Australian Bank has declared a 99c dividend. This will be paid on 13 December. It went ex-dividend on 4 November.

This means that shareholders who had purchased shares up until 3 November will get the dividend of 99c on 13 December. If you bought NAB from 4 November, then you won’t get the December dividend.


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