When is the last day to hold the stock to get paid the dividend?

Quote from lindq:

LOL! This is one for the "Classic Posts" list.

(What you're pondering, son, is making money from dividend capture. And why it won't work is because 50,000 other people this week alone have pondered the same damn thing.)

P.S. There is no free lunch.
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I'm glad you found that statement amusing. I certainly had fun writing it.

The previous commenter (much like yourself) made assumptions about what I was trying to do, and instead of answering my questions, proceeded to tell me that what I was trying to do was not possible.

In all fairness to you and the previous commenter, it's much easier to generalize and attempt to answer questions quickly than to tediously walk through my arguments critiquing my logic and expounding option pricing theory. Nonetheless, this realization didn't stop me from hoping someone might be willing spend the time.
 
Quote from StockApprentice:

I'm having difficulty figuring out how long I would have to hold a stock to be paid the dividend.

Is it really as simple as buying the stock on the in-dividend day (the day prior to ex-dividend) and selling it on the following day (ex-dividend)?


If you prefer, maybe it's easier to answer which of the following scenarios will result in a dividend payment.

1) Buy the stock prior to ex-dividend date and hold through the date of record.
2) Buy the stock prior to ex-dividend date and sell the stock the following business day on the ex-dividend date.
3) Buy the stock prior to ex-dividend date, sell calls against the position, all of the shares are called away after the close.


Any information anyone would be willing to offer would be most appreciated. Thanks for your time.
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The first quarterly dividend will be payable on April 4 to shareholders on record March 11.

Wal-Mart [WMT 52.01 0.04 (+0.08%) ] said its board approved a dividend of $1.46 per year in fiscal 2012, which ends next January, up from $1.21. That translates to about $5.2 billion paid out to shareholders.

Any information anyone would be willing to offer would be most appreciated. Thanks for your time. '

The markets the best teacher...go for it.
 
I think the OP is interested in the exact timing, so in the WMT example if you sell the stock on the 11 March will you get the dividend or do you have to hold it through the close of the 11 March?
Way I understand it is it goes ex on the 11 March, i.e. before the close.

I swing trade and if I am short I watch the dividend dates. Not much point in holding a short through a dividend date if you don't need to.

Also I am not american so I get whacked with a 15% withholding tax on any dividend paid, although you can claim it back, its a real pain.

So dividend dates are very important.
 
Quote from dont:

I think the OP is interested in the exact timing, so in the WMT example if you sell the stock on the 11 March will you get the dividend or do you have to hold it through the close of the 11 March?
Way I understand it is it goes ex on the 11 March, i.e. before the close.
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they dont go ex before the close. they open ex. you have to own it on the close of the day before it trades ex dividend. you can sell anytime after it opens on ex dividend day.
 
Quote from Free Thinker:

they dont go ex before the close. they open ex. you have to own it on the close of the day before it trades ex dividend. you can sell anytime after it opens on ex dividend day.
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Yes you are exactly right, I re-read my post and it was not clear.
 
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