Forum Archive Index - August 2000

["Kathy Gruschow" <kathy@nzse.co.nz>]

Don

When a listed company announces a dividend they are required 
under NZSE Listing Rules to provide 10 business days notice of a 
record date.  From the date of announcement shares are quoted 
CD or 'cum dividend'.

This record date, which must be on a Friday or the last business 
day of the week, is the date the share registrar determines 
entitlements based on registered holders.

Shares are quoted XD or Ex Dividend the day after the record date. 

Investors who purchase up until cob on the record date are entitled 
to receive the dividend.  If you sell your shares prior to the record 
date you are not entitled to receive the dividend.

FASTER (the NZSE's trading/settlement system) operates on the 
basis that there has been a change in beneficial ownership at the 
point of sale even though the schedule of registered holders may 
be different.

If you are not a registered holder but a beneficial owner prior to the 
record date, your stockbroker will adjust (in the case of a dividend) 
the contract price to reflect the dividend payment and send you a 
letter confirming your entitlement (if any) to imputation credits and 
the like. (Members of the NZSE anyway)

To determine whether or not you are entitled to a dividend (or 
indeed any other benefit like bonus issues, rights issues etc) have 
a look at the record date for the dividend and compare with the date 
of sale/purchase on your contract note.

Hope this helps.

Kathy

On 29 Aug 00, at 10:25, greg.g.watts@nz.arthurandersen.com wrote:

> 
> 
> Could someone please explain to me how the dividend process works ie if a
> company announces a dividend, what shareholders or former shareholders
> receive the dividend, the people who hold shares in that company the day
> they announce the dividend or the people who held shares at the year of
> quarter end????????
> 
> Cheers
> 
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