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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? Apr 22, 2016 at 9:33
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    That would generally be the case, yes.
    – assylias
    Apr 22, 2016 at 9:35
  • 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.
    Apr 22, 2016 at 17:50

2 Answers 2

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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.

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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!

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