HELP! I bought some stock in BANK OF AMERICA TODAY will I get a dividend if I keep it till tomorrow?

Question

It says on earnings.com on their front page that Bank of America is paying 64 cents per share dividend on the 27th I get that but what I don't get is this. Do I have to keep it till the Ex-Date of june 4th or the Record date June 6th??? If I sell the stock after whatever date is the correct one that you have to hold it till either the 4th or 6th of june WILL I STILL GET THE DIVIDEND even if I sell?? CONFUSED!!! HELP!!

http://www.earnings.com/highlight.asp?date=20080604&client=cb

Answer 1

the only thing you are getting is being broke with the economy the way it is

Answer 2

And for this they want to roll back the capital gains tax??

Answer 3

You need to hold it at least until the ex-dividend date in order to receive the dividend, at which point you can sell it.  That will make you an owner of record on the record date 2 days later, as trades take 3 days to settle.

I wouldn't worry about collecting the dividend though.  The stock price is adjusted down by the approximate amount of the dividend on the ex-dividend date, so you gain nothing.  If that weren't the case, everyone would be making easy money by buying stocks right before the ex-date and selling the next day to collect the dividend.  And there is no easy money in the stock market.

Answer 4

If you own the stock prior to the X-Date you will get the dividend

On the X-Date, the price of the stock will be reduced by the amount of the dividend since any one buying on that day WILL NOT get the dividend.

So you can sell it on or after X-Date.

Answer 5

Remember "ex" means without.  So if you buy on the "ex-div" date, it means you buy without the dividend.  Similarly, if you sell on the ex-div date, it means you will receive the dividend.  You will still be the record holder by the record date because the trade settlement will be three days from your transaction date and the record date is two days after the ex date.

The dividend is deducted from the opening price on the ex-div date.  That doesn't mean that the stock price can't go up or down further during the day.  I've seen both.  Many people buy on the ex-div day to take advantage of the temporary mark-down in price, especially with stocks that pay good dividends (they are buying fto capture the future dividend not the one that is being paid).