If i buy before ex-date and sell on record date then i will receive dividend?

1

i have a doubt on buying of dividend stock For example:
If a company set its
Ex-date as 20/7/24
Record date as 21/7/24

then if i buy the company shares on 18/7/24 and sell on 21/7/24 then will i eligible to receive dividend?

2

@ArjunaGupta Yes because if you sell on the Record date, the settlement will actually happen on the next day (shares will move out of your Demat). Hence there is concept of Ex-Date and Record Date where the corporate action impact (dividend in this case) is factored on the Ex-Date.

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3

ex date = bought date = 20th
record date = sell date = 21st

Eligible for dividend ?

@iamshrimohan

4

Hi @krishag

Yes, in this scenario you are eligible for the dividend.

5

so the price of the shares ideally fall on the opening of record date

6

@krishag

During this time, you might see that the price of existing shares could decrease as the overall number of shares increases.

Once the bonus shares are credited, the total valuation will reflect more accurately (although it may vary depending on market conditions).

7

but what if ex-date and record-date comes in same date then we buy before ex-date/record-date sell on those ex-date/record-date, then i will receive dividend?

8

@ArjunaGupta Yes because as earlier said the shares will actually go out from your Demat only the next day.

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10

I think you mistook the situation as bonus shares. we are talking abt dividend here. dividend will reduce the price of the share after ex date period is over bcz BVPS will decrease due to distribution of dividend

11

yes i know about 2-3% price drop because of dividend