I'm still fairly new to trading but i want to try understand this concept. I'll use basil read as an example for the figures: Closing Price 8may = 13.10 LDR = 8may Div Payment date = 18may I understand that if i had bought this share before the close of trading on the 8th of may I would be entitled to the dividend regardless of whether i sold the share on the following monday? is that correct? Secondly, i have read that the share price will fall by the amount of the dividend. So if the dividend yield is say 4.5%, then the share price will fall by 13.10 - (13.10 x 4.5%) My question is, when will the share price fall by this amount, im assuming on the day the dividend is paid, 18may? If my understandings are correct, would it have been possible to buy this share on the 8th of may for R13.10, sell it on the 14th of may for 13.10 and then still receive your dividend of 4.5% on the 18th of may? Reason being is, if this is possible i'd be able to profit about 2.5% clean on the share after taking into account brokerage costs. This is a minimal amount but surely if u invested alot in it, you could still make some good money. I'd appreciate anyone's replies thankyou :)