Questions about stock dividends


commoner5

New Member
Dec 23, 2010
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#1
I have a question about ex dividends (xd) and I get different answer when I google which I thought should be quite universal. Can someone explain in the local context.

Assuming I have 1,000 shares with dividends payout at 0.10 cts per shares. That means the dividends will be $100. The questions are:

1) Do I have to hold on to the 1,000 shares to enjoy the dividends until xd is announed?
2) What is the position of the seller and buyer if I were to sell all 1,00 shares when xd is announced.
3)Normally how many days is the xd

Thank you.
 

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wmayeo

New Member
Feb 11, 2008
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Singapore
#2
I have a question about ex dividends (xd) and I get different answer when I google which I thought should be quite universal. Can someone explain in the local context.

Assuming I have 1,000 shares with dividends payout at 0.10 cts per shares. That means the dividends will be $100. The questions are:

1) Do I have to hold on to the 1,000 shares to enjoy the dividends until xd is announed?
2) What is the position of the seller and buyer if I were to sell all 1,00 shares when xd is announced.
3)Normally how many days is the xd

Thank you.
1) Yes till XD
2) Not sure..
3) there's a term period at their announcement. 14 days? Sometimes i seen it like a month.
 

commoner5

New Member
Dec 23, 2010
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#3
1) Yes till XD
2) Not sure..
3) there's a term period at their announcement. 14 days? Sometimes i seen it like a month.
Thanks. Most importantly I want to know this. Further takers?
2) What is the position of the seller and buyer if I were to sell all 1,00 shares when xd is announced, or during the xd period.
 

reachme2003

Senior Member
Oct 6, 2003
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#4
Question 1 and 2. a) scenario A. when you sell shares when it is xd, you sell the shares without the entitlement to dividend. i.e. the buyer will not be entitled to dividend, so share price xd is usually at a lower price. the seller(i.e. yourself) is entitled to the dividend.

scenario B. when you sell shares when it is cum div, you sell it WITH entitlement to dividend. i.e. the buyer is entitled to the dividend, so price cum div is usually at a higher price. the seller(i.e. yourself) is NOT entitled to the dividend.

Question 3. irrelevant question. it is of no difference/consequence to any parties. for info about cum div and ex div dates. look out for the company's announcement or SGX website.
 

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wmayeo

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Feb 11, 2008
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#5
Question 1 and 2. a) scenario A. when you sell shares when it is xd, you sell the shares without the entitlement to dividend. i.e. the buyer will not be entitled to dividend, so share price xd is usually at a lower price. the seller(i.e. yourself) is entitled to the dividend.

scenario B. when you sell shares when it is cum div, you sell it WITH entitlement to dividend. i.e. the buyer is entitled to the dividend, so price cum div is usually at a higher price. the seller(i.e. yourself) is NOT entitled to the dividend.

Question 3. irrelevant question. it is of no difference/consequence to any parties. for info about cum div and ex div dates. look out for the company's announcement or SGX website.
good knowledge sharing. thanks :)
 

commoner5

New Member
Dec 23, 2010
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#6
Question 1 and 2. a) scenario A. when you sell shares when it is xd, you sell the shares without the entitlement to dividend. i.e. the buyer will not be entitled to dividend, so share price xd is usually at a lower price. the seller(i.e. yourself) is entitled to the dividend.

scenario B. when you sell shares when it is cum div, you sell it WITH entitlement to dividend. i.e. the buyer is entitled to the dividend, so price cum div is usually at a higher price. the seller(i.e. yourself) is NOT entitled to the dividend.

Question 3. irrelevant question. it is of no difference/consequence to any parties. for info about cum div and ex div dates. look out for the company's announcement or SGX website.
Thanks so much for the detailed explanation.

As for Q3, isn't it the xd period is important as surely the buyer or seller want to know his position whether he enjoy or lose the dividends? Or we just simply look out at the papers everyday to see whether it is printed cd or xd. But of course that could always be a day too late if depend on papers.
 

shierwin

Senior Member
Dec 29, 2008
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East Coast
#7
Thanks so much for the detailed explanation.

As for Q3, isn't it the xd period is important as surely the buyer or seller want to know his position whether he enjoy or lose the dividends? Or we just simply look out at the papers everyday to see whether it is printed cd or xd. But of course that could always be a day too late if depend on papers.
Transaction whether cum Div or Ex Div will be stated in the contract. Your dealer should be able to tell you cum or x Div prior to transaction.
 

reachme2003

Senior Member
Oct 6, 2003
3,735
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#8
of course, it is necessary to know dividend status before trading. particularly, when one trades close to/during/immediately after dividend entitlement period. outside this period, dividend does not matter in a big way.

ex div period is usually kept short. this is put in place, primarily to avoid doubt, when one trades immediately after entitlement period. i.e. after book closure date.



Thanks so much for the detailed explanation.

As for Q3, isn't it the xd period is important as surely the buyer or seller want to know his position whether he enjoy or lose the dividends? Or we just simply look out at the papers everyday to see whether it is printed cd or xd. But of course that could always be a day too late if depend on papers.
 

Big Kahuna

Senior Member
Dec 15, 2004
2,126
1
38
Singapore, Singapore, Singapor
#10
1) yes, for example if your stock xd tomorrow, u can sell immediately Liao, however many people will be doing the same thing so the stock price usually will adjust accordingly

2) not quite understand ur question, if u are referring to share price, it depends on supply and demand and market sentiment. If u lucky, after minus off the dividend the share price might still go up a bit, like kep corp last week.

3) I am not too sure about the exact answer, to me xd tio Si xd, that means it's the xd date it self, any share that purchase on this date will not entitle to dividend
 

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