Shares Ex Dividend ?

H

hcirnitteg24

Guest
Can someone shed some light please, as I am new to investing just wondering why some shares are now gone ex dividend, what determines this and is there a possiblity these shares could return to giving dividends ?

PS It may help to know I am making reference to shares in the banking sector.
 
It doesn't mean that the shares have stopped paying dividends altogether.

A share price is quoted "cum dividend" or "ex dividend".

Let's say that Bank of Ireland set a dividend date of 1 March 2008.

Shareholders registered on that date will get the dividend. If you sell your shares a few days beforehand but the sale is not processed by the Company Registrars until after that date, you will get the dividend, but you must pay it to the buyer of the shares.

So "cum dividend" means that you are entitled to the dividend; "ex dividend" means that you are not entitled to it.


Brendan
 
After doing a bit of research I have another question on dividends, I have seen a share with a published dividend of €24.20 (I wont name the share as per posting guidelines) but is it true to assume the dividend received would be your no of shares held by €24.20 less the capital gains tax ? ie if you have 100 shares a return of €2420.00 ? This seems to be paid twice annually too, is this correct ?
 
A dividend payment of €24.20 sounds very high but is, of course, possible. Are you sure it's not €0.2420 or maybe €2.420? If you hold 100 shares and the dividend is €24.20 then you would receive 100 x €24.20 = €2,420 in total. This would normally be subject to 20% dividend witholding tax and would be paid net of this and a DWT cert issued. Dividend payments are subject to income tax and not CGT. If you are a high rate taxpayer then you are liable for 41% tax on these payments but get a credit for the 20% witholding tax.

Post crossed with gravitygirl's.

Also - many companies pay dividends at 6 month intervals but I presume that some could just pay a single annual dividend. Obviously some companies pay no dividends.
 
Oops just read the small print and the dividend quoted is actually in cents, I was thinking it sounded too good to be true, oh well wishful thinking :) Thanks for the information on the taxing of dividends. Can you recommend a good website to research stock information besides ISE (and here of course.)
 
I use the FT website and yahoo finance. FT seems pretty comprehensive. I'm sure there are other good ones too
 
hc

Just to clarify the Posting Guidelines, we don't allow speculation about the price of individual shares e.g. "Is AIB a good buy?".

But technical questions such as yours are fine and it is ok to name the share involved as well.

Brendan
 
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