Q&A by Don Bright
Do you know the exact time when dividend
ownership is recorded? Is it at the
close? For example, MO (Altria Group,
Inc.) trades ex-dividend. Say the dividend
tomorrow will be 64 cents. Could
someone buy at the close, sell aftermarket,
and capture the dividend (assuming
they can sell it aftermarket near the
NYSE close price)? ó vhehn
First off, it is the overnight holder
(settlement date) of the stock prior to the
ex-dividend date who is eligible for payment.
Afterhours trades are treated as
same-day trades for clearing and settlement.
Itís a nice idea, but dividend plays
are usually contingent on using options
in connection with collecting the dividend.