Saturday, October 24, 2009

When can I expect a dividend on my brokerage account?

I bought an ETF (VTI ticker) and owned it when the ETF was paying dividend. What are the rules for receiving. Owning the fund just one day prior dividend pay-out is enough? When the dividend arrives?. What is the usual delay or is a delay usual? If I sell the fund a week after dividend decision, will I still get it when it is actually transferred later?
When can I expect a dividend on my brokerage account?
You must own a stock on the closing date to qualify for any dividend.





For each share of VTI you owned on the ex-date ( 9/24/2007 ), you will get 0.642 cash, probably paid into the cash account holding your shares. Payable date for that dividend was 9/28/2007, so if you qualify you should have it shortly. If you have a certificate, they will send you a check to your address of record.





It is all but IMPOSSIBLE to buy and sell stocks to take advantage of dividends, because the whole market knows when they will be paid out, so the market naturally imposes a discount or premium on the price that effectively eliminates that possibility!





If you want to earn "free money" from dividends, just buy Dow stocks.
Reply:You need to own the stock on whats called the "ex-dividend date" to get the dividend. This is typically 2-3 weeks before the dividend is paid. On the fund website, there is probably a section somewhere on when the ex-dividend date is. They may also give the "record date." The ex-dividend date is also 3 business days before the record date. Owning it a few days before the pay date is not early enough.

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