Please guide me.
Can an investor who purchases a share days before dividend is distributed get benefit of dividend?
I am asking so because a company has just announced a special dividend to all shareholders along with a dividend and the date is in 1 week.
I want to be able to get that dividend.
I do not physically own the stock.
Will owning the stock now entitle me to dividend.
Sorry if this is a stupid post.
I could not find any information on the internet to solve this query.
So, safe to say that you can expect dividends if you buy a few days before the ex-dividend date.
‘Can an investor who purchases a share days before dividend is distributed get benefit of dividend?’
You can buy (i.e. place an order with your broker and receive the contract note) upto the day before the ex-date for the dividend, and you will get the right to receive it. The trade date in the contract note must be no later than a day before the ex-date.
You can find out the ex-date on the specific stock page in the stock exchange website. For eg, HDFC page is here on BSE : http://www.bseindia.com/stock-share-price/housing-development-finance-corpltd/hdfc/500010/ .
Below on the bottom right you can see tabs viz., News, Results, SHP, CA and Bulk. Click on the CA tab (CA stands for Corporate Action), and you will see the ex-date and Purpose. The latest one says 14/07/2017 under ex-date and Final Dividend Rs 15 under purpose. So if you place a successful buy order upto 13/07/2017, you have a right to receive this dividend.