hello,
In this post, we are going to talk about dividends.
Here’s what you’ll find out:
– Dividend
– Dividend base date
– Ex-dividend date
When it comes to stocks, there are some, but not all, companies that pay dividends.
It can be said that it is one stone and two trillion won by raising profits from stocks and receiving dividends like pocket money.
In 2020 last year, especially, many ant investors flocked to Samsung Electronics, and Samsung Electronics and Samsung Electronics are representative stocks that pay dividends. (For reference, ‘woo’ preferred stock is a stock that does not have voting rights but pays a higher dividend. However, the trading volume is lower than that of ordinary stocks.)
So how do you get dividends?
If you buy a stock before the ex-dividend date, whether it is a year, a month, or a week, you can receive a dividend.
In other words, it doesn’t matter how long you hold the stock, it’s the base date that matters. 주식 배당금 받는법
Let’s take Samsung Electronics as an example to make it easy to understand dividend payouts.
How many stock dividends will you pay?
Samsung Electronics pays dividends four times a year. (April, May, August, November)
For reference, not all companies pay 4 times, and there are many companies that pay once, and there are many companies that don’t. Different companies pay different dividends. Paintooth
So what is a dividend?
1. Dividend
In simple terms, it can be viewed as a distribution of company profits. When you make money, you return the proceeds to the shareholders. Dividends are the payment of a portion of retained earnings to shareholders in a certain form from the profits made by a company by earning hard money. A portion of this retained earnings accumulated by the company is paid to the shareholders, who are the owners of the company, in cash, stocks, and bills.
Samsung Electronics’ most recent dividend base date was December 30, 2020 in the fourth quarter of last year, and the ex-dividend date was December 29.
Dividend date? Ex-dividend date?
It can be confusing enough for beginners in stocks, but let’s summarize it in an easy way.
2. Dividend base date
Simply put, it means that you will only pay dividends to those who own the stock on this reference date.
Therefore, in order to receive a dividend, you must hold the stock on the dividend date. In this way, of course, the dividend is not given to anyone, and the dividend base date is set.
Since it is a base ‘day’, it is a fixed date, not a period. Therefore, the dividend base date is the last day that shareholders must officially hold their stock in order to receive dividend payments.
Here’s something to note.
Shares take 2 business days to be actually settled.
Therefore, if you want to hold the stock on the dividend date, you must buy the stock two business days before the dividend date.
Let’s take Samsung Electronics as an example in the fourth quarter of last year.
Samsung Electronics’ dividend base date for the fourth quarter of last year was December 30 (Wednesday).
Therefore, stocks must be purchased by December 28 (Mon), two business days before, to be recorded on the shareholder list on the dividend base date, two business days after, and are included in the subject of dividend payment.
In other words, after December 29, even if you buy a stock, you will not receive a dividend, and this date is called the ex-dividend date. Since ‘lock’ means falling in Chinese characters, you can remember that you will not receive dividends from this date on the ex-dividend date.
So let’s learn more about ex-dividend dates below.
3. Ex-dividend date
When a stock trades after the dividend date, it is said to be ex-dividend. It will be easy to understand that it means that there is no dividend.
Investors who purchase shares on or after the ex-dividend date will not receive the dividend. Of course, investors who already own the stock on the ex-dividend date receive the dividend.
Therefore, in order to receive the dividend, you must buy the stock before the ex-dividend date.
Note that dividends are paid even if you sell shares you already own on the ex-dividend date. This is because it takes two business days for the stock to actually settle. So, even if you sell on the ex-dividend date, the actual settlement is after the dividend base date. Therefore, you own the stock on the dividend base date, which is the basis for receiving dividends.
On the ex-dividend date, the stock price usually falls.
There are many people who buy before the ex-dividend date, put it on the list of shareholders only, and sell again on the ex-dividend date.
If you look at the stock charts last year as well, many companies saw their share price fall on the ex-dividend date.
Also, the fact that stocks are traded on the assumption that the cash to be paid out for dividends has been withdrawn from the pre-dividend market capitalization is also reflected in the share price decline.
Finally, let’s summarize through the example of Samsung Electronics.
Samsung Electronics 2020 Dividend Schedule
First quarter
Purchase deadline March 27 (Fri)
Ex-dividend date March 30 (Mon)
Dividend base date March 31 (Tuesday)
Dividend payment date May 19
Q2
Purchase deadline June 26 (Fri)
Ex-dividend date June 29 (Mon)
Dividend base date June 30 (Tuesday)
Dividend payment date August 19th
Q3
Purchase deadline September 25 (Fri)
Ex-dividend date September 28 (Mon)
Dividend base date September 29 (Tuesday)
Dividend payment date November 18
Q4
Deadline for purchase is December 28 (Mon)
Ex-dividend date December 29 (Tuesday)
Dividend base date December 30 (Wednesday)
Dividend payment date in April 2021
Let’s recap based on the most recent Q4 2020.
December 28 (Mon): Last day to buy to receive dividends
December 29 (Tuesday): Ex-dividend date (No dividends even if you buy, you can sell)
December 30 (Wed): Dividend base date
December 31 (Thu): Closed (no transaction)
Dividends for the fourth quarter of 2020 are expected to be paid during April 2021.
In December, corporate tax is usually paid in March while the year is settled.
As all of these year-end closings are over and the dividends are paid out, the Q4 2020 dividend will eventually be received in April 2021.
Please refer to the website where you can check the dividend payment date for each company.
Access to the Securities Information Portal (SEIBro)
-> stock
-> Stock Rights Schedule
Schedule by period -> Dividend schedule -> Check dividend base date
Payment schedule -> Check dividend payment date
Stock dividend payment date schedule inquiry
You can see that the Q4 2019 dividend was paid on April 17, 20.
Finally one more!
Dividends are subject to withholding tax of 15.4%.
You earn income, so you pay taxes.
We have learned more about dividends, including dividends, dividend base date, and ex-dividend date above.
So I hope you fight!