Will I get a dividend this quarter or not?

Question

I bought 750 shares of company X on August 10, 2008. The dividends are $2.56 per share. So this means $2.56 is divided by 4 for the 4 quarters (or $0.64 per share per quarter), right? And the ex-dividend date is 03-Sept-08, the dividend payout date is 26-sept-08. So will I receive a dividend in September even though I bought the stock only in August? And if I do get the dividend, then I should get ($0.64 X 750) = $480, right?

Answer 1

The companies do not pay out dividend in quarterly payment (unless they have specified as such) Companies pay dividend in one go when they announce the record date. You  will receive $ 2.56 in one go.

Yes you will receive the dividend since you bought the stock in August and the record date( ex-dividend date) is in Sept. Record date means that people who held the shares on that particular date (Record that) will receive the dividend.

No. Your dividend will not be one fourth it will be $ 2.56 X 750 = $ 1920

Answer 2

yup.

Answer 3

Your math sounds right and you will get the dividend payment if you hold the stock on Sept. 3...

As for the " benefit"...it's all in how you look at the company... your investment in the company is still the same, only a tiny portion of it has already been given to you in cash. You have the same number of shares and they may be worth a little less...but they will gradually go back up ...sometimes in a short time... ( I've had it happen with FRO and PCU ) or it may take a while, just remember to keep the dividend figure in your head when you are considering any trade... you want to sell when the share price and the div equal a decent profit. ( that goal you set for yourself when you're buying.)

Just info: last quarter FRO paid a $ 2.75 div...dropped for a few days, then went $ 7.00 above my purchase price !!  I sold.

I'm in again this quarter... x-date is around 4 Sept. ...div = $ 3.00 per share.   Hoping for similar results.....