CIM's statement is that the dividend of $.17 is payable on Jan.27th to owners of record as of Dec.31,2010. Now that muddies up the water! As I read it, even if I am an owner 1-day before the ex-dividend date, I still have to be an owner of record as of Dec.31,2010 to collect the div. on Jan. 27th! I believe I can still understand English! Please HELP!
I take it that you will be leaving me freezing for the next 90 days or so.
I guess it's true that buy and hold your stocks is no longer valid on how to make money.
I will play the odds and hold it for 5 years and keep buying more with my dividends.
It's amusing to listen to all the comments, however It may be necessary to be put in simpler terms:
You must be an owner at least 1-day before the ex-dividend date of Dec. 29th. That means you must own the stock at the close of Dec. 28th to collect the dividend. Since it normally takes 3-days to be a registered owner, that's why the company says owner of record as of Dec. 31,2010. Simply, if you bought the stock on or before Dec.28,2010 and held it on the close at Dec.28,2010, you are officially an owner of record and can do whatever you want to do with stock and still get the dividend on Jan. 27,2010. Now that is as simple as I can get! Hope that enlightens you boys and girls on the fence. You too, Joe!
some people are looking to collect the dividend and selling the stock for a capital gain all at once. They try strategies like PUTS, collect div, sell, getin before this date, get out the next. They drive themselves crazy. There ARE NO shortcuts, no secret ways of positively beating the system. The market forces account BEFORE hand and establishes a very level playing field. Like a previous poster said, "buy the stock and collect the dividend." Relax.
According to Scottrade, CIM goes ex-dividend on December 29, 2010. CIM shares purchased on December 28th or before will receive the 17 cent dividend; CIM shares purchased December 29th or after will not.
Winnie...you are correct. Divs are paid to owner of record...that is why I stated it is the important date. Takes 3 days for a trade to settle to become owner of record. As a rule to remember though...buy before ex date and you can sell on ex date to still get the divi....as long as you were the owner of record for the date that is stated by the company paying the divi. You DO NOT need to own the stock on the pay date to receive the divi....just be owner of record for that date.
Not much else to say.........SF
No. If you do not sell the stock one day or more business days prior to the ex-div date, then you receive the dividend even if you sell it on or after the ex-div date. Forget the date of record or the payable date. It's your dividend.
buystock99 has already posted a link to an excellent explanation.
<<buystock99 has already posted a link to an excellent explanation.>>
Thanks! cwn600. Now if we can get people to read it that would clear up the same questions every time it`s dividend time. All the answers are there.
People should save this link in their bookmarks for future reference instead of trying to correct each other. Useful tool to share.