What You Need To Know Before Trading Dividend Stocks

Prior to buying stock in a company that distributes cash dividends, check today’s newspaper. If the stock you want to buy has been marked x in any of these papers, it means that it is already gone ex-dividend. In case of a company that pays dividends in form of stock, you should also confirm if the stock has approached ex-dividend ahead of investing in it.

Another thing you should determine is more information about the company’s dividend payment practices because the procedures of dividend payments may vary. If you sell your shares in a stock prior to the ex-dividend date, you are going to lose the right to claim your shares’ dividend on the upcoming dividend payment. On the days near the ex-dividend date the stock usually moves up. Below discussed even stocks are approaching their Ex-Dividend Date on September 19, 2012.

Source: Potential Trader

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