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Author: mjs111 Big red star, 1000 posts Feste Award Nominee! Old School Fool Coverage Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 62  
Subject: Re: covered calls and dividend Date: 1/14/2010 9:22 PM
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No, you would only get the dividend if you sold on or after the ex-dividend date. There are 4 dates when it comes to dividends:

Declaration date: the date the company declares the dividend. The announcement will also include the date the dividend will be paid.

Ex-dividend date: the day the stock trades without the dividend. If you sell before this date, the buyer will get the dividend. If you sell on or after this date, you will get the dividend.

Record date: stock trades settle in three days, so the record date is three days after the ex-dividend date. This is the date the company looks at its records to see who are the owners of the stock and who the checks should go out to.

Payment date: usually about a week after the record date, which gives the company time to get all the payments out.


Here's a link that explains all these dates in more detail:
http://www.investopedia.com/articles/02/110802.asp


Mike
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