I know that in the case of cash dividends I will get the dividend as long as I bought the stock before the ex-date but what happens in the case of an stock dividend?
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So I if I have 10 stocks and sell them after the ex-date of a 10:11 stock dividend I will have 1 new stock on de payable date?– LuisClementeCommented Apr 22, 2016 at 9:33
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1That would generally be the case, yes.– assyliasCommented Apr 22, 2016 at 9:35
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I recently had that happen twice: I received a quarterly DRIP dividend, and it took me a quarter to figure out how to sell a fractional share... By which time I received another DRIP dividend. Sold the second fractional share much faster. :-)– Peter K.Commented Apr 22, 2016 at 17:50
2 Answers
I know that in the case of cash dividends I will get the dividend as long as I bought the stock before the ex-date but what happens in the case of an stock dividend?
This is same as cash dividends. You would receive the additional stock.
Here's what Investopedia says about payouts for ex-dividend stocks:
A stock trades ex-dividend on or after the ex-dividend date (ex-date). At this point, the person who owns the security on the ex-dividend date will be awarded the payment, regardless of who currently holds the stock. After the ex-date has been declared, the stock will usually drop in price by the amount of the expected dividend.
Read more: Ex-Dividend Definition | Investopedia http://www.investopedia.com/terms/e/ex-dividend.asp#ixzz4Nl4J3s4k
I hope this helps.
Good luck!