These five ASX 200 index shares will trade ex-dividend next week

One can buy a stock just before dividend and become eligible to receive dividend. If you buy a particular stock just one day before its ex-dividend date, then you will be eligible to receive the upcoming dividend to be distributed by a company. When a company announces dividend, it also provides details of record date, ex-dividend date etc.

Yes, one can buy a stock just before dividend and become eligible to receive dividend. If you buy a particular stock just one day before its ex-dividend date, then you will be eligible to receive the upcoming dividend to be distributed by a company. When a company announces dividend, it also provides details of record date, ex-dividend date etc. Record date is the date on which a shareholder should have the stock in his/her demat account in order to be eligible for the upcoming dividend. Similarly, ex-dividend date is the date on which a particular stock trades on the exchanges without the value of its upcoming dividend.

Yes, one can sell a particular stock after the record date and still be eligible to receive the upcoming dividend. Even if you hold a particular stock for one day, the record date, you will be eligible to receive the dividend. You just need to ensure that the stock remains in your demat account on the record date so that you become eligible for the dividend. On record date, a particular company takes out the list of shareholders, who will be entitled to receive the upcoming dividend.

Historically, it has been observed that on ex-dividend date price of a particular stock falls by approximately the dividend amount as short-term investors tend to sell the stock after being eligible to receive the upcoming dividend amount. However, in some cases, a particular stock may also rise on the ex-dividend date because of any stock specific news or due to the overall bullish sentiment of the market on that particular day.