Hi guys,
I was under the impression ex-dates should be 2 days before record date. However I noticed securities trading in Brazil all have ex-date after the record date. Anyone have any idea how this works?
Thanks,
Ryan
I don’t think every country has ex date 2 days before record date. Isn’t Australia something like 4 days? Also, many European countries went from T+3 to T+2 last month. Not sure how that will affect dividends going forward.
Sure that’s true. But what’s puzzling me is that securities in Brazil have ex dates AFTER record date. Not sure how that works.
The company pays to the holder of record (i.e. settled positions) on record date. If you purchase prior to ex though you are entitled- it just means you don’t get paid the dividend directly. Instead your broker will go into the market and claim the dividend on your behalf from the seller. You still get the payment- it’s just a bit more convoluted.
There are cases where this gets more confusing, but just stick to the ‘if you purchase before ex you get the dividend’ rule and you’ll be fine.