facebookWanna ask you about ETF like since it can be traded like a stock, does it mean i wont receive dividends if I don't hold on to it for the entire year? - Seedly

Wanna ask you about ETF like since it can be traded like a stock, does it mean i wont receive dividends if I don't hold on to it for the entire year?

Is my understanding of ETFs correct?

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Elijah Lee

22 Apr 2020

Senior Financial Services Manager at Phillip Securities (Jurong East)

Hi Zaydennnn,

No. ETFs are traded like a stock and behave like one. As long as you hold it past the ex date, you'll be eligible to get the dividends on payment date. Depending on the dividend frequency, you will likely receive dividends around twice a year. The dates are not exact (i.e. not necessarily exactly 6 months apart), so you will need to check the ex dates.

Many dividends declare dividends like a normal stock. So, as long as you hold the ETF until the ExD date, you will receive the dividends.

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