Comments 7

445

If you could explain the difference between (ex-dividend date) and (record date) which is two days later, and why both are mentioned together in distribution announcements without one sufficing for the other, that would be better.

115

In response to Mohammed Hamdan

Ex-dividend date indicates the last day to own the stock to benefit from the distribution, while record date is the date on which the company finalizes the shareholder list after settlement of trades is completed, and it is usually the second trading day after the ex-dividend date. So both dates are mentioned for clarification, not because the investor has two different purchase deadlines.

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The problem is not the date; the problem is if the stock shocks you. Look at SABIC, Al-Tasnee, and Petro Rabigh, how their profits declined or distributions stopped.

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There are companies that skip distributions for years, so investment decisions should not be based solely on distributions but on the company's strength and sustainable profits.

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Nice explanation, but a question: Are there people who buy the stock after the ex-dividend date and expect to receive the distribution? I think this is one of the most common mistakes.

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128

9167

Everyone knows the difference. The best dividend entitlement announcement is to just mention the entitlement date without the phrase 'after two working days' or so. The best speech is concise and suggestive.

Thank you. Raising awareness about these details limits random investment decisions.

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