I've been observing mREIT related trading patterns for the last few years. In the past, day before ex-date saw buying by investors wanting to get a big dividend. But now the trend seems to be the opposite, and the day before ex-date is a selling date by investors wanting to take a cap. gains profit and NOT stuck with dividend taxed as ordinary income.
called "dividend harvesting" if there is a gain one takes it and is still able to get the divi with out holding stock and than one buys back at new price. ex div 1/9 to shareholders as 1/13
so trade takes 3 day to settle and you stll get the divi with out hold shares.................. its all on the up and up
If you do not own a stock up to close of business on the day before XD day, you do not get the dividend. The date of Settlement is not the date and time of "Trade" (contractual ownership) as recorded by the Stock Exchange and notified to the Company for its Record of shareholders.
So you sell on the 8th for cap gains and you get the dividend on the shares you sold? This is interesting, I bought on the 8th, Scottrade has a 13th settlement date, date of record is the 13th for payment. Won't I as the new buyer be the one getting the dividend v. the seller. Scottrade is listing purchases made on the 9th as having a settlement date of the 14th. I would think date of record ends at the end of the business day or 12 midnight on the 13th. Either way I will not suffer since I trade in a tax free account, but I would still like to know how my thinking is wrong on what I just said. Willing to listen and learn, have a good night.