# How is the dividend payment calculated when an asset is disposed on the ex date?

Example:

XYZ Corp pays a \$0.25/share dividend - Ex date=1/15/13, Pay date 1/31/2013
I own 100 total shares of XYZ on 1/1/2013
I buy 50 shares of XYZ on at 12 PM 1/15/2013 (increasing total shares to 150)
I buy 50 more shares of XYZ at 1 PM on 1/15/2013 (increasing total shares to 200)
I dispose of all 200 shares of XYZ at 4PM on 1/15/2013 (decreasing total shares to 0)


On 1/31/2013, what is my dividend payment worth?

• 25.00 (using balance of 100 on start of ex date:1/15/2013)

• 37.50 / 50.00 (using balances of 150 and 200 during ex date:1/15/2013)

• Nothing (because I didn't own it at the end of ex date: 1/15/2013)

• Something else entirely

• I doubt this question fits the Quant.SE format. I suppose Money.SE would be a better place. May 23 '13 at 22:30

## 1 Answer

You get nothing, by this logic you could accumulate risk-free money all day by buying/selling on the ex-date as long as the dividend is larger than the spread.