Stock dividends. What time of day do you have to be a shareholder in order to be considered for the dividend?

Question

I am doubling my shares in a company, but my purchase won't go through until the middle of the day Tuesday. Do they usually base dividend distribution on shareholders as of market open, market close or somewhere in between. What is common practice and does this always apply, usually apply or it's really just up to the company itself? Thank you!! :)

Answer 1

Cash or stock dividends are usually announced sometime ahead of the date they are to be paid and are designated"  payable to shareholders of record(date). So if you fall before that date you are entitled to the dividend. If the broker lets you sell before that date,look for a new broker.

Answer 2

Close of the day of record...That is the day that is used to figure who is entitled, but is paid a number of days later to those registered on day of record.

You should get a cheque mailed to you if your were registered owner of shares on Record date

If your stock is held in street form at brokerage, They will add the dividend to your cash account, or mail you a cheque  as per your instructions.

You only have to own the stock on the record date to get the dividend, But the stock usually sells for an amount that is the stock price , less the dividend payout, when it  trades X-dividend, That means after day of record.