What is a Dividend?
A dividend is a portion of a company’s profits paid out to shareholders.
To be eligible for a dividend, you must purchase the stock during or prior to the cum-dividend trading period and hold the stock on the ex-dividend date.
Using the diagram below, if you wish to purchase shares just to receive the dividend and then sell them again, you need to purchase the stock during the cum-dividend trading period (no later than the 20th).
Opting for a stable investment may require sacrificing short-term yield for long-term benefits. While lower-risk dividend stocks may yield less income initially, they tend to offer more reliable returns over time.
You may then sell them anytime on or after the ex-dividend date (21st onwards).
If you purchase the stock on the ex-dividend date, you will not be entitled to the dividend payment.
How can you see when a stock is ex-dividend?
In the Trade for Good app, next to the code, you can see the “XD” for codes that are ex-dividend.
You can download the offline guide here When am I eligible to receive a dividend?
What you learn here has been used in our Trade for Good software.
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