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    noboat's Avatar
    noboat Posts: 31, Reputation: 1
    Junior Member
     
    #1

    Jan 4, 2007, 11:39 PM
    Dividends
    If a dividend paying stock is held for a short term how is the dividend paid? I'm not clear on how that works with short term trading positions. r.f.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #2

    Jan 5, 2007, 12:05 PM
    The company declares the dividend on a set date.

    The owners of the stock at the end of trading on that date get the dividend, even if they sell the stock the next day.
    walt17's Avatar
    walt17 Posts: 335, Reputation: 28
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    #3

    Jan 6, 2007, 05:21 AM
    Quote Originally Posted by noboat
    if a dividend paying stock is held for a short term how is the dividend paid? i'm not clear on how that works with short term trading positions. r.f.
    There are four dates relevant to dividends.
    Announcement date: This is when the company announces they are going to pay a dividend. You should read the announcement carefully because the following dates may spread out over two or three months
    Record date: This is the date you must own the stock in order to receive the dividend.
    Ex dividend date: If you buy on or after this date you will not receive the dividend. It is usually two business days before the Record date.
    Payment date: This is the date the dividend is paid.

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