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I read that as long as I hold a stock for two business days, I will get a dividend? What if I make multiple trades for one stock. For example, if I buy 20 shares and sell 20 two days later, then I buy 30 shares and sell 30. How much in dividends will I get if it is $1/share?

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  • It's different because I am asking about multiple trades – chrislam5459 Aug 3 '18 at 20:19
  • However many shares you own (regardless of how you obtained them) on the ex-dividend date determines how much dividend you will get. You do not mention when these trades are made relative to the ex-dividend date so it's impossible to answer how much dividend you will get. – D Stanley Aug 3 '18 at 20:32
  • They are all made before. Would I get 30 or 20 or 50? – chrislam5459 Aug 3 '18 at 20:33
  • When did you sell them? If you sell them before the ex-dividend date you get no dividends. – D Stanley Aug 3 '18 at 20:34
  • Read #2 here: dividend.com/dividend-education/… – Bob Baerker Aug 3 '18 at 22:37
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read that as long as I hold a stock for two business days, I will get a dividend?

This is incorrect. You need to hold the stock on ex-dividend date to get divided. If you buy sell during the year, you do not get any dividend

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Dividends are commonly given various dates such as announcement date, ex-date, record date and payment date. It's all a bit confusing for traders, especially with certain types of special dividends that have different rules from ordinary dividends.

The only period relevant to receiving a dividend (on the payment date) is the trading day prior to the ex-date. This is sometimes known as the "entitlement date".

If you have purchased the stock at or prior to the close of trade on the entitlement date (and still hold it) at the close of trade on that date you will be paid the dividend. If you have multiple purchases (and even a few sales in-between) this is all incorporated - it's the total number of shares that you hold at the close of trade on the entitlement date that counts.

Any purchases on or after the ex-date are not entitled to the dividend.

For a trader, the record date is irrelevant. It is only used by the share registries to determine who owns the stock on ex-date -1 trading day. Rules regarding record dates have changed over the years too, with settlement periods such as T+5, T+3, T+2 and T+1 and variations from country-to-country making strict day-based rules difficult.

You can sell the stock any time on the ex-date or any date thereafter and still receive the dividend.

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