We think there is a bit of confusion by some investors on when one is entitled to receive dividends so we thought a little blurb might help (or confuse folks more).
To be entitled to receive a dividend on a stock you need to own the shares PRIOR to the ex-dividend date. For instance on the quick capture we lucked into last week we purchased the shares on Thursday (11/29/2018) as the shares had dipped down and we were able to snag them at $21.85–before the day was out the shares bounced back to $22.19 on the close Thursday.
The purchase of the shares on Thursday means the purchase will ‘settle’ on Monday (12/3/2018) which is the record date –always 1 day AFTER the ex-dividend date. The ex-dividend date was Friday 11/30/2018.
The shares were bought on Thursday but sold on the ex-dividend date meaning the sell will settle on Tuesday. This means I was the owner of record on Monday (the record date) as the sell settles on Tuesday.
To simplify the above–simply own before the ex-dividend date–then you can sell anytime on or after the ex-dividend date to be entitled to the dividend.
In this case I capture the 47 cent dividend and because I bought at $21.85 Thursday and sold at $22.10 Friday I have a 25 cent capital gain for a total profit of 72 cents.