How to Sell Dividends

Sell your stock before the ex-dividend date.

Stocks provide income by issuing dividends, which are usually paid out quarterly from the company's retained earnings. If you own stock that pays dividends, it will likely be worth more prior to the dividend payment date. The two dates which decide when dividends are paid are referred to as the ex-dividend date and the date of record. If you try to sell your stock too late, you will retain (not sell) the dividend.

Instructions

1. Determine the Ex-date, also known as the Ex-dividend date. On or after this date, the stock will trade without the dividend; that is, if you buy a stock on the ex-date, you will not receive the dividend. You can determine the ex-date by looking at the press release which announced the dividend. You can also ask your broker or contact Investor Relations of the company.

2. Contact your broker or set up a trade in your online brokerage account to sell the stock before the ex-date. The ex-date is usually the second business day following the date of record. The date of record will usually be included in the original press release. You can also contact the Investor Relations department of the company.

3. Confirm that your name is not listed on the company's books on the date of record. The date of record is the date the company decides which shareholders get the dividend. The best way to confirm this is by calling Investor Relations for the company. They will instruct you to call the financial institution with custody over company stocks. This is referred to as Custody Operations in most financial institutions.

4. Confirm the trade has been executed. You will receive a trade confirmation that can help to verify the date the stock (and dividends) were sold.

References

• Investopedia: Ex-dividend
• Investopedia: Ex-date
• Investopedia:Dissecting Declarations, Ex-Dividends And Record Dates