Robert - Didn't mean to be sloppy, you're right. I thought for a minute before using the words "several days" - wanted to avoid mentioning weekends/holidays etc and wasn't sure about "business/trading" days. Same with "record day/owner of record." Main point of discussion here is differentiating between "buyer" or "seller," and who gets the div. When I first started doing this on my own, you'd think any broker could have explained very simply but that didn't happen......Frank
IMO. Has been effective last two quarters, and this one could be even better. That's because unlike the usual one month wait for divy to make up for the fall, this time, because it is accounting end of year, we only have to wait two days! for our payment.
Immediate fall will EQUAL your divy payment.
Then we have to see what we will see.
I still believe the lower divy is VERY positive for stock appreciation going forward, because it means the next offering, which I think could come the first week in May or so, may come in at over 4.00 or possibly over 4.10 - even 4.15!
This would be out of your mind Bullish for the stock and almost certainly mean that we are going over 5.00 sometime this year.
I think management now wants to get the stock over 6.60 eventually, or whatever the point is where it can be margined by almost everyone. But that won't come this year. Could come in 2012, Market willing.
In any case, people must realize that this stock is a large holding in high yield funds and extremely popular among money managers to the very wealthy. It's a built in constituency which tends to play CIM very well.
Try to play with them, not against them.
Take your divy, say thank you, and wait to double down on the next above 4.00 - cross fingers and toes - offering, which everybody and his grandmother in Topeka will jump on.
You only need to own the stock for one day (the Record Date) to be entitled to receive the dividend payment. If you buy before the ex-dividend date, and sell on the ex-dividend date or after, you will receive the dividend payment.
If you sell after the ex-date you do not get the dividend because there is a three day settlement period and you would not be an owner on the record date. On the e-date the stock price goes down to compensate for this.
By inserting "(the record date)" you just proved Pappa_Korn's post. Once and for all, the record date is the settlement date and depends upon when you execute the purchase of the stock. It's you must be shown as "owner of record" on a certain date as set by the announcement.
If you just remember that "ex-dividend" means "without the dividend" ... it should make it easier to remember.
I don't know of any brokers that use a settlement period other than 3 days .... I can't imagine anything that would cause more confusion.