[neelin]

I understand the concept of ex-dividend dates and distribution of yearly dividends. I do not understand when a dividend is distributed quarterly, what is the procedure on distributing the dividend. i.e. I have a stock for 11 months, but I don't happen to own it on the yearly ex-dividend date... or a variety of other scenarios.
Help please!

 

[Jimmy]

I just think you have to worry about the 'ex dividend date'. If you own the stock before that date, you get the dividend which goes into your account as 'income'. On or after you don't.

 

[Eclectic12]

My understanding is that the only change for quarterly versus annual dividends is that there will be four ex-dividend dates (prior to which the purchase has to happen), four record dates (typically the day after the ex-dividend date) and four payment dates instead of one of each for the annual version. Or to put it another way, four cycles instead of one cycle.

Looking at Emera's dividend history (they pay quarterly) ... the ex-dividend date is Oct 31st, the record date is Nov 1st and the payment date is Nov 15th. To be paid the dividend, one would have to have bought on Oct 30th at the latest and still own the stock on Nov 1st.

Looking at the most recent ex-dividend dates for 2018, they are Oct 31st, July 31st, April 30th and Jan 31st, which are quarterly.
http://investors.emera.com/GenPage.aspx?IID=4072693&GKP=205189


As for the procedure, I believe it is the same ... just that it is happening four times a year instead of once a year. To be paid the four quarterly dividends, one has to own the stock on the applicable dates.

Where one owns the stock for 11 months, it is going to depend on how the set of four dates fit into the eleven months.


Cheers

 

[neelin]

My understanding is that the only change for quarterly versus annual dividends is that there will be four ex-dividend dates

Thanks, that makes sense. Usually only one is published, I'll assume that you just project the rest in 3 month increments.

 

[Eclectic12]

Well I did miss mentioning that another difference is that the quarterly dividends will be one quarter of what the annual dividend would be.

You can project out or you can look at the company web site to see if there is schedule of the past dividends ... which will pretty much confirm the schedule, with a small variation.
As well, the quarterly dividends are typically announced before the dates in question. For example, the latest Emera dividend was announced Sept 28th with the payment and record dates included in the press release. It is not too hard to find the previous business day, which would be the ex-dividend date.
http://investors.emera.com/file.aspx?IID=4072693&FID=395179344


Cheers

 

[like_to_retire]

Thanks, that makes sense. Usually only one is published, I'll assume that you just project the rest in 3 month increments.

Yearly dividends? Never heard of it.

Dividends are distributed quarterly.

There are three dates to be aware of: Ex-Dividend Date, Record Date, Pay Date............. That's it.

If you want the dividend, you have to have the date of settlement before the Record Date.

If you're on the record, you get the dividend.......... That's it.

Now that we have two day settlement, the following is true.

Business day 1. Buy here or before to be "on record" by business day 3
Business day 2. Ex-Dividend Date
Business day 3.
Business day 4. Record Date

............. random number of days depending on company

Business day whenever . Dividend Pay date

ltr

 

[Eclectic12]

According to TransCanada's chart of dividend dates ... the part about the Record Date as business day 4 is too late.

Three of the four quarterly dividends list the record date as the day after the ex-dividend date. For example, the Q1 dividend lists March 28th, 2018 as ex-dividend with March 29th as record date.
The last one in Dec lists it as three days later, where the ex-dividend date is a Friday.
https://www.transcanada.com/en/investors/dividends/

I seem to recall the Emera table following the same pattern.


Cheers

 

[AltaRed]

I've never heard of annual dividends either for stocks. Most are quarterly with a few monthly. There are many mutual funds that have annual distributions and some with quarterly or even monthly distributions. Some ETFs have semi-annual distributions but most are quarterly, or in some cases such as bond or REIT ETFs, monthly distributions.

 

[fireseeker]

There is some variety in payment terms out there.
I happen to hold ADRs for the Dutch insurer Aegon. They pay semi-annually, in May and August.

 

[carson]

Yearly dividends? Never heard of it.

Dividends are distributed quarterly.

ltr

It's common for European companies to pay annual dividends and UK companies to pay semi-annual. You're unlikely to notice if you hold them in a fund rather than directly.


For example I have shares of Sanofi SA as an ADR and they pay me a dividend once per year.

 

[like_to_retire]

It's common for European companies to pay annual dividends and UK companies to pay semi-annual. You're unlikely to notice if you hold them in a fund rather than directly.


For example I have shares of Sanofi SA as an ADR and they pay me a dividend once per year.

Huh, thanks Carson - interesting. Learn something every day.

ltr

 

[kcowan]

Here are the four cycles of paying divvies by companies:
Cycle 1: dividends paid in January, April, July, and October (JAJO)
Cycle 2: dividends paid in February, May, August, and November (FMAN)
Cycle 3: dividends paid in March, June, September, and December (MJSD)
Monthly dividends