Is the stock dividend payout prorated?

Hi Konrad,

Dividend payouts for stocks are not pro rated. As long as you hold the stock on the Cum-Dividend (CD) date, you will be able to get the dividend. You can even buy it successfully at 455pm on the actual CD date, and sell it the next day (but the price would have dropped), and you'll still get the dividend per share as per what the company annouced.

Yup. As long as you purchase before the ex dividend date, you will get the dividends.

Ex Dividends means exclude dividends which means if you buy after ex dividends you wont get the dividend. But usually, on the day of Ex Dividend, the stock price will usually drop to factor in the dividend.

E.g. Last traded price $20. Dividends $0.30.

After ex dividends, the open market price is usually $19.70. But it also depends on the market. It may be higher or lower than that since the market is always moving.