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AllianzGI Convertible & Income Message Board

  • wedbush80 wedbush80 Dec 5, 2008 12:02 AM Flag

    Dividend question

    In recent days hv acquired a posn in NCV but now am curious abt the declared, then suspended, dividend. Especially in light of a comment another poster made that he actually received his recent dvd which then was clxd by NCV. The dvd credit was subsequently reversed by his broker/dealer, I believe it was TD/Ameri.

    Assuming they re-initiate a dividend payment wud the freshly declared dividend go to the current shareholders of record or wud some part of the payment go to holders that held the security when the dvd was recently suspended?

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    • we have been in a "news" blackout with this fund! ...not that i expect them to say something everyday but it sure would be nice if they could shed some light on what is going on!...this is typical of all funds when they are struggling...they go silent!

    • Look at ex-dividend this way.

      if you sell one day before ex-dividend, the buyer gets the dividend.
      If you sell on ex-dividend day, you get the dividend.

    • Ooby - Read my post real careful - you will find that we are saying the same freakin' thing!

    • actually u are wrong and first guy was right.
      The ex date is the first day the stock trades without the dividend as if you look 3 business days forward; to settlement date; you will see that day is one day after the record date. Trust me.

    • "You are almost right but it is the holder of record the day BEFORE the ex date who gets the divvy; remember ex-dividend means WITHOUT dividend. Minor point unless you miss by a day."

      You are wrong IMO.

      If you buy a stock on the EX DIV date YOU will NOT get the div.
      If you sell a stock on the EX DIV date YOU WILL get the div.

      According to Scottrade:
      Also known as Ex-dividend Date. The date on which a stock trades without the dividend amount figured into the price. Ex-dividend is an interval between the announcement and the payment of the next dividend. An investor who buys shares during that interval is not entitled to the dividend. Typically, a stock's price moves up by the dollar amount of the dividend as the ex-dividend date approaches, then falls by the amount of the dividend after that date. A stock that has gone ex-dividend is marked with an X in the newspaper listings.

    • The only scenario that would (not freakin wud, your not sending a txt message) make sense and be fair in my view would be that the shareholders of record on the EX DIV date should get the div regardless if the div was postponed, paid & rescinded or whatever. Even if you sold your shares AFTER you held them on the EX DIV date you have a right to the div. Anything else "would" lol, constitute theft by the fund imo.
      PS: Scottrade did the same thing TD Ameritrade did ie pay & rescind.

      • 2 Replies to ooby_dooby1
      • Just a note that might explain your situation -- some brokers have a policy of posting expected dividend and interest payments in advance of actually receiving the funds. (Fido calls it "shadow posting".) Since 99.9% of the time the expected payment arrives in a day or two, it's a nice little customer convenience.

        That is, right up until the day when the payment *doesn't* arrive and the customer has the funds rescinded. If you've actually spent the funds already, you could get a margin call even in a cash account.

        This type of policy might explain why some people briefly saw the dividend, even though the company didn't pay it.

      • Thx for your imput. I notice NCV has an individual in charge of investor relations along with a 800 phone #. I think I will call him or her the early part of the new week. I'll report back if I can obtain clarification.

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