I think you're probably right about your broker making a mistake and falsely blaming the company. I used to have monthly dividend problems (normal dividends; not using the 25% rule) from several companies with a certain brokerage and they would give me all kinds of ridiculous excuses that weren't true. I knew they weren't true because I tracked down phone numbers for the transfer agents and they were able to confirm payment, on time, every time, to the broker's clearing house. (After transferring the dividend funds to its transfer agent, a dividend paying company is out of the loop. The idea that they can ask to delay payment after the fact is totally bogus; the money has already left the company's account.) The brokerage dividend monkeys were poorly trained, totally confused, and were grasping at straws to blame anyone but themselves. They also had a very high turnover rate, which perpetuated the problems.
Thanks for all the help you've given everyone in understanding this process, but this is not the situation with my account (also Sharebuilder). I didn't buy during the due bill period. I bought all of my shares in April, well before the record date. One lump trade. To this day I have never sold any and never added. The dividend was deposited in my account on the payment date of Aug 12, the same as it was my Fidelity account, but it was reversed and removed with a note saying "ENZN Push out". I called and they said that ENZN had requested that they not pay any dividends until the 18th and they were only doing what was requested of them. If I needed more information I would have to call ENZN.
I don't know what's going on at Sharebuilder. Maybe their system can't handle the due bill process so they are holding everyone until due bills are settled. I have no idea, but I personally feel like Sharebuilder has made a mistake and are blaming ENZN.
I stand corrected. Thought you sold. You will get the divvy. Check out due bills for explanation. My account is the same. Sorry for confusion.
Sentiment: Strong Buy
"my only option is enzn in which I would have to sell shares, and then not get the divvy on the 18th because I'm selling now"
No, if you held ENZN at close of after hours trading yesterday, you'll get the dividend. It's too late to sell and LOSE the dividend. It's already yours, even if it takes a few days to collect.
"that reversal screwed me"
Yeah, it sounds like it did. But it's through confusion at either your broker or their clearing house. It's not caused by ENZN. The company is out of the picture after it pays its transfer agent (who then pays the clearing houses of the brokers). This kind of confusion is very common with dividends under the 25% rule. The minions at the brokers and clearing houses usually assume a dividend will follow normal dividend rules and by the time they figure out it doesn't, it's a ball of confusion that takes time to unwind.
but with the dividend of 3500 I used that to purchase something else.........still have my shares...............when they reversed the 3500 my account was negative all of the sudden...........now I have to fund my account and my only option is enzn in which I would have to sell shares, and then not get the divvy on the 18th because I'm selling now, plus at a loss after todays price drop which is a double whammy! double loss! If I sell the other stock that I used the divvy money for then my account will be frozen for 90 days for unsettled trades.......that reversal screwed me...................why didn't they mention that like a week ago and not the day of? The whole reversal could cost me over 5k. I got the message that I have to come up with 1200 for the negative balance. what do I do............obviously if I had the 1200 laying around id fund it and hold my shares until divvy date, but I don't. quite the quandry
I had the issue that a lot of people have had with the dividend payment showing up in my sharebuilder account yesterday and then being removed. I've called the last 2 days. Today I was told that ENZN asked them not to pay them until 8/18. I purchased all of my ENZN shares in that account in April so I was owner well before the "record" date.
I use Sharebuilder for one of my accounts also. I've held all of my ENZN stock since April. My dividend showed up yesterday morning and then was removed later that morning. The transaction detail said "REV DIVIDEND ENZN PUSH OUT". I talked to someone there and they said that ENZN must have requested that it be pulled and that if it's not corrected by EOD today to call them back.
I found this in Wikipedia: https://en.wikipedia.org/wiki/Special_dividend
In the case of a special dividend of 25% or more, special rules apply. If you sell stock after the record date but before the ex-dividend date, your shares will be sold with a book entry sometimes called a "due bill," which denotes that though the company will pay the dividend to your account (as the shareholder of record), your account must, in turn, turn that dividend over to the buyer of your stock. Conversely, if you buy stock after the record date but before the ex-dividend date of a large special dividend, you are entitled to the dividend and will receive it via the due bill process.
From Understanding Dividend Dates (which you obviously don't):
"The payment of a dividend via due bills is quite unlike a normal dividend payment. Shares that are purchased after the record date but before the deferred ex-date (the due bill period) are traded with a due bill attached. The chain of events that begins on the payment date works like this: The dividend is first paid to the shareholder of record, then, on the due bill settlement date, which is commonly two trading days after the ex-date, the dividend is withdrawn from the account of the shareholder of record who sold the shares during the due bill period and is then paid to the shareholder who bought the shares during the due bill period. The dividend is paid to all shareholders of record first because that is the only information the company has on who is eligible for the dividend. The due bills are then executed by the stock brokerages of the buyers and sellers during the due bill period. The company does not participate in the due bill process."
From the SEC website:
"If the dividend is 25% or more of the stock value, special rules apply to the determination of the ex-dividend date. In these cases, the ex-dividend date will be deferred until one business day after the dividend is paid. If you sell your stock before the ex-dividend date, you also are selling away your right to the stock dividend. Your sale includes an obligation to deliver any shares acquired as a result of the dividend to the buyer of your shares, since the seller will receive an I.O.U. or "due bill" from his or her broker for the additional shares. Thus, it is important to remember that the day you can sell your shares without being obligated to deliver the additional shares is not the first business day after the record date, but usually is the first business day after the stock dividend is paid."
Your smugness obviously has no basis in fact.
" You did not have to keep the shares until Aug 12 to collect the dividend. End of story."
No, the due bill settlement date is the end of the story, and that doesn't come around until next Monday.
"You didn't have to keep the shares until Aug 12 to get the dividend as long as you owned them on the 21st."
You're completely overlooking the due bills. On the due bill settlement date, August 17, the dividend will be removed from your account and forwarded to whoever held the shares at the close of trading on August 12. That's how the 25% rule works.
"this is why you never believe anything you read on a message board without doing your own DD"
Yes, and you obviously haven't done your DD on the due bill process.
It was there in the morning of 8/12 by the afternoon it was not, it said rev plus I'm in at 1.42 over a month ago.............what a joke.......I basicially wasted 1 1/2 months waiting for a .50 cent dividend, and its down .38 cents today...........lol I haven't sold yet because I want to see that divvy post to my account!
Yahoo always does this showing a huge loss after he divvy date. Rest assured, anyone who purchased shares as late as yesterday, Aug 12, will get the divvy. Stay tuned and keep calm.
You bought with due bills attached. You're not entitled to the dividend until the due bill settlement date, which is next Monday. Some brokers credit accounts before then, but they're not obligated to.
"I think this might have to do with shorters.. maybe they have to cover their shorts. I dont know how it works"
Well, you're right about that last part. Today is too late for short sellers to cover to avoid paying the dividend.