you need to own the stock tomorrow. On the 12th it opens .44 lower. you need to own it through the 12th. On the 13th you can sell it. Some companies still honor the divi if you sell on the xdate but i wouldn't chance it.
Ok lets see if I have this correct. ABT opens in about 8 minutes. If for example lets say it opens at $47.54, then that would be UP a dime from the Tuesday close of $47.84???
I have another question (sorry I am a novice investor) I bought the stock on Friday, but since the settlement date may be after the 12th will I still get the dividend since the trade date was prior to the 12th?
thanks in advance!!!
The price is adjusted at 4:01 PM of ex date. Trades in extended hours will not settle to the 16th and thus no div. If u had checked ABT this AM before the opening it would show it closed at 47.40 on 1/11 so any change today is based on 47.40. If u had 100 shares 1/11 mkt value was 4784.00-this AM ur acct. would show it as 4740.00
"The price is adjusted at 4:01 PM of ex date"
Today is the ex-dividend date. The share price will not be adjusted at 4:01pm today.
I think you meant to indicate the adjustment was yesterday at 4:01pm
Generally, if you sell on ex-date you may get dividend, but if you buy on ex-date, you may not get.
But ex-date and div-payout date are totally seperate things. When is ABT's ex-date? and when is ABT's div-payment date?
The reason it is called "ex" date, is because as of that date it trades without the upcoming dividend. Thus if you sell it on ex date, you WILL receive the dividend and if you buy it on "ex" date, you will NOT receive the dividend. There are no generally or maybes about it.
ABT's ex-date is 1/12/2011.
If you are short the stock on ex-date you will have to pay the dividend to whomever you borrowed stock from to short it, since they are the "real" owners of that stock. You will pay that out in cash and depending on your tax status it may or may not be deductible in full or in part. If you cover on ex-date, you were effectively short on ex-date, you needed to cover the day before ex-date to not have to pay the dividend owed.
You are correct, that was what I meant. It amazes me how much confusion there is regarding the various dates and adjustments re Divs and my post was not any help-thanks for correcting it-maybe now it will help clear the "mystery" of the process