Will I be paid dividends if I own shares?
I just recently bought shares in Lloyds banking group PLC. I'm quite new to this so I don't understand how the dividends work properly.
I hadn't purchased the shares for dividends, just hoping for long term appreciation of the price, though when I searched for dividend payments with the bank they list the coming and previous dividend payments. Though I am unsure what it means, or how to interpret it correctly to see if I will get a dividend.
Description: Special 2016
Dividend (per share): 0.50p
Ex Dividend Date: 06/04/2017
Record Date: 07/04/2017
Payment Date: 16/05/2017
So I have purchased these shares a few days ago before the Ex dividend date. From what I understand this would mean I have purchased the shares in time, though I don't understand the description, does it mean I had to purchase the shares in 2016?
Here's the link: www.lloydsbankinggroup.com/investors/shareholder-info/dividends/
If anyone might be able to help it would be greatly appreciated.
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Yes, as long as you own the shares before the ex-dividend date you will get the dividends. Depending on your instructions to your broker, you can receive cash dividends or you can have the dividends reinvested in more shares of the company. There are specific Dividend ReInvestment Plans (or DRIPs) if you are after stock growth rather than income from dividend payments.
gnasher729, was able to see my problem here. It was a silly oversight. It's not 50p a share, its 0.5p a share.
@Bezzzo : The dividend is not 50p per share, it is 0.50p per share -
half a penny per share.
Thanks!
What is a dividend?
Essentially, for every share of a dividend stock that you own, you are paid a portion of the company’s earnings. You get paid simply for owning the stock!
For example, let’s say Company X pays an annualized dividend of 20 cents per share. Most companies pay dividends quarterly (four times a year), meaning at the end of every business quarter, the company will send a check for 1/4 of 20 cents (or 5 cents) for each share you own. This may not seem like a lot, but when you have built your portfolio up to thousands of shares, and use those dividends to buy more stock in the company, you can make a lot of money over the years. The key is to reinvest those dividends!
Source: www.dividend.com/dividend-investing-101/what-are-dividend-stocks/ What is an ex dividend date
Once the company sets the record date, the ex-dividend date is set based on stock exchange rules. The ex-dividend date is usually set for stocks two business days before the record date. If you purchase a stock on its ex-dividend date or after, you will not receive the next dividend payment. Instead, the seller gets the dividend. If you purchase before the ex-dividend date, you get the dividend.
Source: www.sec.gov/answers/dividen.htm That said, as long as you purchased the stock before 6/4/17 you are entitled to the next dividend. If not, you'll get the following one after that.
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