It then goes ex-dividend on 12/28 - You do NOT get the dividend if you buy and your funds are not settled by 12/17 EOB.
Sentiment: Strong Buy
Please read the latest news posted around 1 hour agaso. It clearly states that if you buy the stock by the close of business today you get the dividend. That is why the stock is going up today.
Sentiment: Strong Sell
quantum, dividends that are 25% or higher are under different rules. the record date is just when the company looks at who is holding their stock. shareholders of a stock that pay a div less than 25% need to be on the books by the record date. with 25% or more, you don't need to own the stock on or before the date of record but the ex-div date instead. this is because a due bill is attached to stocks that are traded after the record date but before the ex-div date.
ex: i do not own BAGL yet but plan to before the ex-div date. as long as i buy 2-3 days (for settlement) before the 28th, i will be entitled to the div. however, because i bought my shares after the date of record, i will not get my div until 2-3 days after the payable date. the due bill takes the div from the previous shareholder who was on the books at the date of record and places it in my account. to simplify it....the company pays the date of record holders but if they sold their shares before the ex-date, the div payment is transferred from that seller's account to the buyer's account (me) because of the due bill. the brokerages handle due bills.
"i do not own BAGL yet but plan to before the ex-div date. as long as i buy 2-3 days (for settlement) before the 28th, i will be entitled to the div."
No, you don't have to buy 2 or 3 days before the ex-date to qualify for the dividend. You can buy as late as the 27th. The three day settlement period doesn't apply to ex-dates. They are real-time dates. The ex-date simply takes into account the settlement period required for the trade to settle by the record date for normal dividends, and in this case, by the due bill settlement date.
"It then goes ex-dividend on 12/28"
"You do NOT get the dividend if you buy and your funds are not settled by 12/17 EOB."
That's not true. You get the dividend if you buy anytime up to, and including the payment date of 12-27. As with any dividend, buy before the ex-date, get the dividend. Beginning Thursday, the 13th, the stock will be trading with due bills attached, which obligates the seller to forward the dividend to whoever owns the stock as of the close of trading on the payment date, the 27th. That's why the press release says shareholders of record as of 12-17 will be paid the dividend -- but if they sell before the ex-date of the 28th, they have to forward the dividend to the buyer.
Company and by declared a one-time cash dividend of $4.00 per share (or approximately $68 million in the aggregate) payable to holders of record of the Company's common stock as of the close of business on December 17, 2012. The payment date for the One-Time Dividend will be December 27, 2012.
Sentiment: Strong Buy