Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Could someone refresh my memory please?
Do I have to own shares for 45 days prior to their ex dividend date to qualify for the dividend?
Or if the exdividend date is in about 3 weeks but I am going to hold long term (2 yrs plus), will I still qualify for the dividend?
There is a share I want to buy soon, but I don't want to pay the cum dividend price without getting the dividend.

thanks in advance
Barcoo
Print the post Back To Top
No. of Recommendations: 0
I think this applies to franking credits only. Section 160APHE of Income Tax Assessment ACT 1936 "45 days commencing after the shares go ex dividend before you can claim franking credits." Ralph was mooting reducing this to 15 day's in the infamous "report" ...but fat chance with the government's current tax agenda! I don't think this 45 day rule applies to claiming the dividend outright..I thought that was simply when the register closes. Regards AB
Print the post Back To Top
No. of Recommendations: 0
If you wish to receive the dividend you need to buy it before the date books close for the dividend. As a general rule this is about 5 days before the ex-dividend date, but it does vary between companies - just check the books close date.

Certainly don't need to buy 45 days prior to ex-dividend date to qualify.

Not 100% on the other question except my understanding is the 45 day rule is a taxation ruling and you must hold the shares for 45 days to qualify for dividend imputation from tax office for tax return purposes.
Print the post Back To Top