Sharechat Logo

When do shares go ex-dividend?

Wednesday 23rd January 2002

Text too small?
Q: When do shares go ex-dividend? Within the last month before the dividend? Is there a rule for this from the NZSE or does the company decide it?

A: Yes, there are rules and a set time frame for dividend dates. If you go to http://www.nzse.co.nz/exchange/listing_rules/ you can see the NZSE Listing Rules which contain all the information a listed company must comply with in relation to dividends. The basic outline is this:

When a company announces that it intends to pay a dividend, it gives a series of dates that relate to the payment of those monies. They are the record date, the ex-date and the payment date. The record date is the date that the share registry closes the company's shareholder register and all registered holders of the shares on that date will receive that dividend. A record date is always the last business day of the week in New Zealand (usually a Friday). The rules differ in Australia. The ex-date is the next business day after the record date (usually a Monday). If you purchase a share after it has gone ex-dividend you are not entitled to that dividend. The NZSE Listing Rules state that a listed company must allow a minimum of two weeks between when it announces the intention to pay a dividend and the record date. The payment date is when the company will pay the dividend to its shareholders.

The company can name the actual record date and payment date and can therefore choose the timing that best suits its cashflows. However, it must still comply with the NZSE's Listing Rules.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

What is treasury stock?
Can you explain the term "split factor adjustment"?
What are imputation credits?
When is a company listed as CD (cum-dividend)?
Can I buy shares in my daughters' names?
What is an IPO?
What do bid/offer and buy/sell mean?
What does 'Div cps' stand for?
What is a 'dividend yield'?
Do I have to sell my shares through the broker I bought them from?

IRG See IRG research reports