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Q&A  |  JUN 2003

Q&A by Don Bright

Q&A by Don Bright DIVIDEND PLAY Do you know the exact time when dividend ownership is recorded? Is it at the close? For example, MO (Altria Group, Inc.) trades ex-dividend. Say the dividend tomorrow will be 64 cents. Could someone buy at the close, sell aftermarket, and capture the dividend (assuming they can sell it aftermarket near the NYSE close price)? — vhehn First off, it is the overnight holder (settlement date) of the stock prior to the ex-dividend date who is eligible for payment. Afterhours trades are treated as same-day trades for clearing and settlement. It’s a nice idea, but dividend plays are usually contingent on using options in connection with collecting the dividend.

by Don Bright

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