Dividend time

[fundjunkie]

Hi,
This is probably a stupid question but here goes...

Could I make an element of my stratgey to buy company shares just before they issue their dividend and sell just after? Is there a qualifying period for entitlement to share dividends? Also, how can I find out when a company will pay out?


Thanx,
D

 

[Rainmaker]

Divs

It's a loser!

The price will go ex-dividend (fall) by the amount of the gross dividend. You will receive a dividend net of tax. You will lose unless the price goes up.

 

[Typo]

Rainmaker: I think dividends are usually quoted net of basic rate at 10%, rather than gross, and the dividend gap is typically the net value.

Up until this tax year (April 6th 2004) you received a credit for the basic rate tax on stocks held within an ISA, thus increasing the dividend value by 11.1%. This usually meant it was worthwhile to ISA a stock just before it went XD rather than just after.