Dividends payout question

[#1]

I have never actually understood the factors for trading a share with dividends. Can someone please answer that if you trade the share till the LDT (incl the LDT) and the the next day (ex div) you dump the share or take profit etc would you get the dividend? Or do you have to hold the share till the books are finalized etc (normally about a week after the LDT)....

[#2]

hold the share on LDT day till closing time, you can trade it the next day

[_Marco_]

Centwise, so for example, if the last to to registration is 28april, and an individual buys that share before the close of trade. Would he be able to sell it the next day (29April) and still receive the dividend? Isn't there a certain period u need to hold the share before you can sell it?

[_Marco_]

Centwise, so for example, if the last to to registration is 28april, and an individual buys that share before the close of trade. Would he be able to sell it the next day (29April) and still receive the dividend? Isn't there a certain period u need to hold the share before you can sell it?

[Theater_Cat]

You can flog it the day after LDT and still receive the dividend. In reality the share price falls the day after LDT by more than the dividend amount. What you are trying to do is called 'dividend stripping' and SARS will tax you thereon

[_Marco_]

oh ok i understand. What would be the normal period then to avoid tax ?

[SimonPB]

3 yaers .. and then you only pay cgt ..