Is it profitable to sell stocks? One article answers what is divisible and frequently asked questions!
Buy dividend stocks, of course you want to make a profit! But if you want to keep your dividend in peace, you need to know one important day — not the net day! “What is a net divisible day?” “What happens other than the net day?” “Why is it so important?” Answer it for you one by one below!
What is net division? Must learn before buying dividend stocks!
Subtracted from the net day, that is, the benefits that the company “removes” from the stock that should be paid to shareholders, that is, dividends. In other words, a stock bought on or after the net day will not be able to receive the most recent dividend, and only investors who bought the stock before the net day will be eligible to receive dividends.
Suppose a company's net division date is June 1, and if you buy that company's stock on or after June 1, you won't get that dividend even if you hold the stock afterwards. And if you already held the company's stock before June 1, you can still get a dividend this time, even if you sell on or after the net break.
Can I make a profit from buying stocks less than net days?
When buying stocks on the day of the net, investors will not be able to receive dividends because the company has removed the “rights” payable to shareholders on that day. To make sure you receive dividends, remember to buy stocks before the net division date.
Can I earn a dividend if I sell shares less than net days?
Investors who hold stocks before the net day can still receive dividends that will be distributed soon, even if they sell on or after the net day. Because before net division, you have become an official shareholder of the company and are eligible to receive dividends. This right remains even if you sell the shares after the net division date. Therefore, as long as you become a shareholder before the net division date, you can receive this dividend regardless of when you sell it afterwards.
3 Important Days to Buy Dividend Stocks: Net Date, Transmittal Deadline, and Dividend Date
Apart from net day, due date, and dividend date, these three concepts are interest-related.
Net Subtraction Day: The company “removes” the interest that should pay dividends from the stock, usually on the first two business days of the transfer deadline. Usually the first two trading days of the closing date (due to the implementation of the “T+2” settlement system on the Hong Kong stock market)
CLOSING DATE: THE DATE ON WHICH THE LISTED COMPANY CEASES TO UPDATE AND CONFIRM THE LIST OF SHAREHOLDERS. Only by buying shares before this date can investors become official shareholders and receive dividends.
DIVIDEND DATE: THE DATE ON WHICH THE COMPANY ACTUALLY DISTRIBUTES DIVIDENDS TO SHAREHOLDERS, USUALLY WITHIN A FEW WEEKS AFTER DIVIDING THE NET DATE.
IN OTHER WORDS, IF YOU BECOME A SHAREHOLDER BEFORE THE NET DIVIDEND DATE AND THE TRANSFER DEADLINE, YOU WILL RECEIVE THE DIVIDENDS DISTRIBUTED BY THE COMPANY ON THE DIVIDEND DATE. Even if you sell the stock after the net division, you can still get that dividend.
Selected Blue Chip Dividend Net Date, Transmittal Deadline and Dividend Date
HERE ARE THE NET BREAKDOWN DATES, CLOSING DATES, AND DIVIDEND DATES FOR SOME WELL-KNOWN BLUE CHIP STOCKS* FOR YOUR REFERENCE:
Construction Bank (00939)
Net Dividing Date: July 4, 2024
Subscription deadline: July 6, 2024
Dividend Date: August 2, 2024
Bank of China (03988)
Net Dividing Date: July 8, 2024
Subscription deadline: 10 July 2024
DIVIDEND DATE: JULY 26, 2024
China Petrochemical Corporation (00386)
Net Dividing Date: July 8, 2024
Subscription deadline: 10 July 2024
DIVIDEND DATE: JULY 26, 2024
Industrial and Commercial Bank (01398)
Net Dividing Date: July 8, 2024
Subscription deadline: 10 July 2024
DIVIDEND DATE: AUGUST 19, 2024
* Sorted from near to distant by upcoming net division date, closing date and payment date.
Have you tried clearing and no interest paid?
In general, a dividend may be distributed to a dividend if you have held a dividend on the day before the net day before the net day, but not a “write-down”. In April 2020, HSBC Holdings (00005) was a sensation when it announced the cancellation of the dividend for the fourth tranche of 2019 after the net loss date. But it was only a special case that HSBC Holdings did not want to cancel the dividend, but during the pandemic, the UK government ordered all banks registered in the UK to stop paying dividends in the same year in order to preserve more cash for SMEs in distress due to the pandemic.
Why do stock prices often fall after net loss?
It is normal for stock prices to fall after the net division. Since the net day is subtracted, the company “removes” the dividend from the stock, resulting in a corresponding decrease in the value of each share. In general, the magnitude of the decline in the share price is equal to the dividends distributed. If the decrease is greater than the dividend, the share price falls; conversely, the decrease is less than the dividend, it indicates a rise in the share price.
Using the example of Construction Bank (03988), assuming a net pre-date value per share of HK$10, the company declared a dividend of HK$0.5 per share. Then, on the day of net division, the value of each share will fall by HK$0.5 to HK$9.5.
Therefore, you should not worry too much if you see a decline in stock prices later. You can take an objective mindset to continue watching.
Should I buy or sell except the net day?
So when net divestment comes around, should I buy or sell?
If you want to receive dividends that are about to be distributed, it is best to buy the relevant stock before the net division date. Since you are only officially a shareholder of their company, you can receive dividends.
Whether you should continue to hold or sell after the net split depends on your investment strategy and expectations for the value of the stock.
If you expect the stock price to continue to rise and view it as a long-term investment, you may want to consider holding after the net loss date; on the contrary, if you think the share price will fall and only buy on speculation, then selling after the net break is a good option.
All in all, buying before net can ensure dividends, so post-net buying decisions are based on an individual's investment objectives and risk preferences.
How to buy dividend stocks in Hong Kong?
Futu has a series of Hong Kong stocks and US equities majors to choose from, with the intention of sharing a list of high dividend yields, so that the majors can review the highest yielding stocks at a time.
If you want to buy a dividend in Futubull, follow these steps:
1. Go toFutu Internet, and register a new account.(Register now)
2.Open a combined account on Futu, click below to open it now and enjoy the bonus of the HKD account.(How to open an account)
3. Open the Futubull customer base and click on the high dividend yield to launch the transaction.
Want to make a more accurate decision in one step at a time? Futu's party calendar is here to help! Keep a clean list of cleaning days and holidays for each stock, without having to search, reduce your time at least, so that you have a lot of time ahead of time!
