Debited for Dividend while short...

B

BadCo

I was short AT&T for a few months and just noticed that my account was debited for the .41 quarterly dividend. I don't have a lot of experience on the short side. Is this correct, that the short seller is liable for the stock's dividend payment?

tx
 
Quote from BadCo:

I was short AT&T for a few months and just noticed that my account was debited for the .41 quarterly dividend. I don't have a lot of experience on the short side. Is this correct, that the short seller is liable for the stock's dividend payment?

tx
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yep
 
Quote from piggie2000:

yes thats correct. you sold it so you owe the owner the dividend
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thanks

Ouch:(

Can I write it off against dividends received?
 
Quote from BadCo:

thanks

Ouch:(

Can I write it off against dividends received?
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Yes, just like when you receive a dividend it is considered income, when you are short and it is taken from you it is a loss/payment.
 
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