Ex-div dates, div dates, and holder of record dates are very confusing. Even I may have it wrong.

This is as good as discussion as I've found anywhere: http://www.investopedia.com/articles/02/...

It takes three days to settle. That's the key. It takes three days (week days/ not weekend days) for your broker (on-line / full service) to get your trade / your shares on record in the company you bought.

If you buy on the ex-div date, you won't get the dividend -- so, if you want the dividend you need to buy no later than the day before the ex-div date.

You can get the dividend even if you sell on the ex-div date, two reasons. First, as just noted, if you buy on the ex-div date, you won't get the dividend. Someone has to get the dividend, so it must be the person who sells. Second, if you sell on the ex-div date it takes three days to settle, so you would still be the holder of record simply because the paperwork is not yet complete. In your mind, you traded on the ex-div date, but you technically still have the stock until it's settled, three days later.

Now, if I have that wrong, or if I said that wrong, a million people will jump on me, but that's how I understand it.

If you want the dividend, buy the stock no later than the day before the ex-div date; if you are eager to sell a stock but want the dividend, you can sell as soon as the ex-div date.

I won't be a bit upset if people correct me on this; it is confusing.