Questions tagged [dividends]

This tag is to be used for any dividends related question. When appropriate it should be accompanied by country tag.

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1answer
68 views

How to determine date that an ETF must be owned to be eligible for the dividend payment?

According to Investopedia.com: Similar to an individual company's stock, an ETF sets an ex-dividend date, a record date, and a payment date. These dates determine who receives the dividend and when ...
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1answer
56 views

Why isn't the record date for a dividend at the same time as the ex-dividend date instead of the next business day?

I read on https://finance.zacks.com/long-need-own-stock-dividend-payout-1761.html (mirror): Ex-Dividend Date: The ex-dividend date is the date that stock shares trade without the dividend. ...
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2answers
35 views

When are Open Orders Adjusted by the Amount of the Dividend

I understand that open orders are adjusted by the amount of the dividend (FINRA Rule 5330). But when are the open orders adjusted? For example On Aug 24, 2020 I place buy order for stock XYZ for $100. ...
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1answer
41 views

Yahoo finance: are the open prices adjusted for dividends?

Yahoo finance provides Adj close prices which are prices adjusted for splits and dividends. What about the open price? Thanks
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1answer
21 views

Do dividends from securities held on margin lose their tax advantage?

If a security pays a dividend, depending on the holding period of said security, the dividend might be considered "qualified" and taxed at a lower rate. What if the security is held with ...
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0answers
27 views

Would a UK resident who pays tax to a foreign country on dividends (of less than <£2,000) need to file Self Assessment for this reason?

Suppose an American expat taxpayer living in the United Kingdom earns dividends on U.S. stocks that fall below the UK's tax-free dividend allowance of £2,000, and this is the only income they have ...
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2answers
46 views

Hold or sell a stock after special dividend announcement result in similar gains?

If a company announces special dividend e.g. costco for $14 per share, is it better to hold or to sell? I am assuming that the share price will go up by roughly $14 after the announcement? So is ...
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1answer
60 views

How can I view the sum of all dividends received in one given year on Mint?

How can I view the sum of all dividends received in one given year on Mint? This can't be done in the transactions tab according to https://help.mint.com/Accounts-and-Transactions/888963121/Why-can-t-...
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1answer
52 views

At which time exactly starts the ex-dividend-date? [duplicate]

Let's say some US company declares the ex-divided-date as Sep 30, 2020. Now at which time exactly does this ex-date start? When this stock is traded in stock exchanges world wide, is the UTC time ...
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4answers
195 views

Do companies destroy value when they borrow to pay dividends?

When public companies pay dividends, their stock price will be reduced by the amount of the dividend. This makes sense to me, but I'm wondering if this applies when companies borrow to pay dividends (...
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1answer
59 views

Do non-cumulative preferred stocks have to pay dividends?

I am trying to understand preferred stocks. For cumulative preferred stocks, if any preferred dividend payments have been missed, the dividends owed must be paid out to the preferred stockholder first ...
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5answers
1k views

If you never see the dividend for a fund, why does the ex-dividend date matter?

I'm currently invested in an open-ended fund. As I understand it, neither I nor my broker see its dividend. We just wake up on the payment day and see that the unit price of the fund has moved more ...
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2answers
237 views

Can non-resident aliens avoid taxes on dividends?

Non-resident aliens do not have to pay capital gains tax for stocks, but they have to pay a 30% tax on cash dividends (source). Can they avoid this tax by selling the stock before the ex-dividend date ...
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1answer
46 views

Calculating Dividends paid out and Div ratio from finance sheets

So I was trying to calculate the dividends a company paid out from the balance / income sheet and the retained earnings (the delta between this and last period). I thought the dividends paid could be ...
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2answers
103 views

How does stock exchange affect the company? [duplicate]

People invest in the company initially using an IPO. Now I don't understand how trading the stocks with others (who didn't participate in the IPO) would benefit the company. Also, why do the people ...
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3answers
78 views

Ex dividend date once or multiple times a year for a given stock?

Could anyone please clarify a confusion for me ? I am fairly new to stock investing and more specifically to dividend investing. I understand dividend dates (declaration, ex-dividend, report, payment) ...
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0answers
49 views

Does dividend capture strategy work? What are the tricks to make it work? [duplicate]

Title says it all. I buy around say, for e.g. $10,000 of a stock paying dividends just before the Ex-div date, and buy puts to hedge the move down after dividends are released and then sell off the ...
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4answers
2k views

Can you trust shares with high dividend yields?

There are shares with dividend yields above 10%. Can you trust such shares? Would you buy them? Some examples: TUI (DE000TUAG000) - 14,83% Helmerich & Payne (US4234521015) - 14,15% AGNC ...
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0answers
32 views

Will orders be adjusted on the ex-dividend date if the stock “will not be quoted ex-dividend”?

Consider a stock that will soon pay a dividend, but the dividend announcement says that the stock "will not be quoted ex". Will the prices in the order book be adjusted on the ex-dividend ...
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1answer
127 views

Tax-free dividends because of double payment?

I have just received a dividend of 0.11 $, from which 15% withholding tax was deducted. On the same day I received a dividend of 3,40$ from the same company, but without paying withholding tax. (for 3 ...
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2answers
78 views

Is using Adjusted Close prices the same as calculating the return when dividends are reinvested?

I know that stock data (OHLC) usually includes two closing prices - Close and Adjusted Close. My understanding is that Adjusted Close is used to calculate returns. It adjusts the raw Close price to ...
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0answers
45 views

What stops the depositary banks of American Depositary Receipts (ADR) from charging the maximum possible fees?

Depositary banks of ADRs periodically charge depositary fees (custodial fees) to the owners of the ADRs by subtracting from ADR dividends. The maximum fees that the depositary bank is allowed to ...
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0answers
103 views

What are “Tax Relief Fees” on American Depositary Receipt (ADR) dividends?

I noticed that a "Tax Relief Fee" is usually deducted from ADR dividends. Consider AXA ADR's (OTC: AXAHY) 2020 cash dividend announcement, which includes a "Tax Relief Fee" of $0....
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1answer
79 views

Why do I get charged more than the depositary fees + withheld taxes on my American Depositary Receipt (ADR)?

I have 894 shares of AXAHY (which is an American depositary receipts (ADR)) on my Fidelity brokerage account. According to this answer by Flux, the depositary fees for AXAHY in 2020 are 0.04 USD per ...
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0answers
30 views

Does the Depository Trust Company (DTC) publicly announce ADR custodial fees?

To see the historical custodial fees charged by depository banks on ADRs, I usually go to the depositary banks' websites where, if lucky, I am able to find the historical fee information. Today, I ...
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1answer
91 views

How can I know the exact Depository Trust Company (DTC) fees on an American Depositary Receipt (ADR) before buying the ADR?

How can I know the Depository Trust Company (DTC) (mirror) fees on an American depositary receipts (ADR) before buying the ADR? For example, let's say I want to purchase some AXAHY ADR via my ...
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0answers
30 views

Are the Depository Trust Company (DTC) fees paid on American depositary receipts (ADR) tax-deductible?

Are the Depository Trust Company (DTC) (mirror) fees paid on an American depositary receipts (ADR) tax-deductible (mirror)? I am a US tax resident owning some ADRs (e.g., AXAHY) via a US brokerage ...
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0answers
27 views

US Tax treatment of dividends from single member consulting firm, a UK Private Limited Company

US citizen in UK has a salary from one firm which includes National Insurance withholding, and also owns a UK Private Limited Company to which client payments are made for his consulting work. UK tax ...
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9answers
7k views

Why are dividends different from property income like rent?

My question should be more like: why dividends are inseparable from the appreciation of a stock's price? The common explanation is something like: Stock A pays a $10 (10%) dividend and a share is ...
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1answer
97 views

What happens when dividends etf stock goes down?

I noticed that some dividend ETFs prices went down during the COVID period. Example which went down. What does it mean to dividend per share and does it mean I will get better yields per share when it ...
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3answers
139 views

If an ETF directly reinvests its money back in to itself, does the “compound interest” approach to shares still apply?

The idea of investing in ETFs was given to me as follows, I'll call this the "compound interest approach": Historically speaking, unless you can time the market very well or have a very ...
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1answer
35 views

In what order are Short Term Capital Losses applied when dealing with Municipal Bond Interest, Qualified Dividends, and Ordinary Income?

Let's say I have a net $100 in Short Term Capital Losses and no Long Term Capital Gains to offset. Let's say I also have $100 in Municipal Bond Interest Earnings, $100 in Qualified Dividends, and $100 ...
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2answers
76 views

Is there any specific frequency for a company to announce dividends? [duplicate]

I thought companies would announce dividends on a yearly basis. Is that correct?
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1answer
98 views

Is it a good idea to focus on dividend income when investing in stocks? [duplicate]

I am 30 years old (can hold to stocks for longer) and currently invested in 11 different stocks positions in the US and EU - all of these companies are in the S&P500 and in the DAX and are in 7 ...
0
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1answer
51 views

Still getting dividends if shares are sold after ex-div?

Bought some stock in let's call it XXX company about ~2 months before their ex-div date. Sold this stock completely 2 weeks after their ex-div date. Dividend payment date is next week - do I still get ...
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1answer
122 views

Can companies distribute all remaning cash to shareholders right before filing for bankruptcy?

Suppose a company is insolvent with negative shareholder's equity, $10 million in debt, and has only $1 million in cash. Can the company declare dividends of $1 million to shareholders prior to filing ...
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1answer
124 views

Questions on Index fund dividends

I wanted to ask a few questions regarding Index funds and its dividends. The questions are the following: If I decided to invest 10k into an Index fund and contribute monthly around 100-200 and ...
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2answers
48 views

What are the taxation rules for US non-resident aliens with respect to qualified dividends?

Are the rules different for qualified versus non-qualified dividends? Assuming no DTAA exists between the US and the country of residence.
2
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1answer
61 views

What financial instrument can I use to profit from unexpectedly small or unexpectedly large dividends?

Suppose company A has paid a very steady dividend of $5 per year for the last 10 years. Suppose I have reason to expect that the next dividend will be substantially greater (e.g. $10) or substantially ...
2
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1answer
47 views

What is the difference between “Shell” and “Shell PLC”?

I see two shares which seem to be of the same company: Shell (Royal Dutch Shell) (A): WKN: A0D94M; ISIN: GB00B03MLX29 Shell PLC: WKN: A0ER6S; ISIN: GB00B03MM408 What exactly is the difference ...
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1answer
73 views

US companies' shares traded on London Stock Exchange

I noticed that there are a number of US companies whose shares are traded on London Stock Exchange. Let's take Netflix as an example. In the US, it is traded as NASDAQ:NFLX but in the UK it has ...
1
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1answer
91 views

If an investor wants to reinvest dividends, aren't stock dividends better than cash dividends?

When a company pays a cash dividend, the shareholders may need to pay income tax on that dividend. If a shareholder always wishes to reinvest the dividends, cash dividends have a few disadvantages: ...
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2answers
70 views

Can I donate investment income to charity without getting taxed

I'm wondering if I can donate stock cash dividends or bond interests to charities and make the donations tax deductible? Update: sorry I think I phrased my question poorly. What I really wanted to ...
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2answers
76 views

Do companies declare dividends on specific dates?

Are there specific dates for companies to declare ordinary dividends? If so, where can I find these dates? If not, why aren't there fixed dates to prevent excessive volatility and speculation about ...
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5answers
5k views

If your plan is to reinvest dividends, wouldn't you rather the company not pay dividends altogether?

Case 1: XYZ pays a dividend. We reinvest all dividends back into XYZ Case 2: XYZ does not pay a dividend In Case 1, you end up with more shares of XYZ than Case 2, but the shares will be worth less ...
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0answers
95 views

How can I collect unclaimed dividends?

Suppose that decades ago, I owned shares in a public company, and held onto the stock certificates. Suppose the company never managed to pay me dividends because they could not locate me, and I never ...
2
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2answers
160 views

selling one day before the ex-dividend date after 4pm (during extended hours)

Suppose I have a stock ABC of 1000 shares whose ex-dividend date is May 20 (Wednesday) and I sell 500 shares after the market closes on May 19 (Tuesday) during the extended hours of trading, say at 4:...
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1answer
57 views

Dividend calculation

Beginner question, have been looking this up, but don't find specific answers and struggle to understand how this works. Partly fictional example: I bought 10,000 shares in a company for 0.5$ per ...
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1answer
92 views

Are there any securities that pay out a fixed percentage of a company's profits?

Are there securities where investors are always paid a specific percentage of the company's profits if profits have been made? I know that some REITs are mandated to distribute minimum percentage of ...
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2answers
147 views

Are dividends effectively “dollar cost averaged” across the quarter?

This is off the back of my previous question where answerers established that dividends are equivalent to selling no matter market conditions (tax and transaction costs aside). Selling $100 worth of ...

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