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Difference between Ex-div date and Record Date?

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Pots
Contributor
Hello I'm hoping someone can clarify. Barloworld (BAW)has today as last date to trade cum dividend, starts trading ex-dividend on Mon (7/1/2013)and records date of Fri (11/01/2013. If one chooses to sell BAW sometime during the course of next week will one still qualify for the dividend. Also, if one manages to acquire Lewis (LEW) and Reunert (RLO) when should one sell to qualify for their dividend - they both have last day to trade cum dividednd as Fri 11/01/2013 so what's the record date for?
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3 REPLIES 3
Blik
Super Contributor
To get dividend you need to be holding the share on the Last Date of Trade. So if you hold BAW today, and last date to trade is today, and only sell next week you will get dividend. But you will probably see BAW drop by the div amount on Monday - or thereabouts.
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byrant89
Occasional Contributor
Like Blik mentioned you need to be holding the stock on the last day to trade (day before the ex-date) to qualify for the dividend. The record date is the day that the company looks at its share register to determine the shareholders it needs to pay. Because the JSE runs on a T+5 settlement process, if you buy the stock on the LDT you will only reflect in the company's share register five days later and that is why the record date is five days later...
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Pots
Contributor
Hi. Thanks for the feedback. I now understand - forgot about the JSE's 5 day 'rule'
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