Understanding two key dates are significant for the dividend investor when investing in dividends. Here’s an example. The picture below shows the dividend pay-out for ARA Logistics Trust for Q42021: If you had gone deeper into reading about the dividend entries, the dividends would have been 1.271 cents per share. So, if you own 1,000 shares, you would receive $12.71 in your bank account that will be credited after 4.30 pm to your bank account on the payment date. The most important date is the Ex-Date.

What is Ex-Date?

If you own the stock before the ‘ex-date’, you will be entitled to the dividend. Using the above example, suppose you buy 1,000 shares on 1 Nov 2021. You will be entitled to $12.71 to be paid on 26 Nov 2021. If you buy a day late on 2 ^Nov 2021, you will get nothing on 26 Nov 2021.

Should you trade your dividend stocks before ex-date?

One question traders ask themselves is whether is it worthwhile to trade before you get entitled to a dividend....