Do you still get the dividend if your short the shares?

Discussion in 'Stocks' started by bat1, May 11, 2013.

  1. bat1


    Any stock pros here?

    Question, I went short '' OAK'' at 57 ..2000 shares and it is going ex dividend on the 15th do I still get the dividend? I'm still a share holder right or wrong?
  2. No you do not.
  3. You will be required to pay out the dividend if short as of the ex-div date.
  4. bat1


    pay out?

    what do you mean
  5. The amount of the dividend will be debited from your account. When you short shares, you borrow them from someone in order to sell them. That person(s) still wants their dividend though, so you are the one who pays it.
  6. Handle123


    Since you had broker sell someone elses' shares (you going short), you are liable for the dividend of that person is to get.

    So not only did you not get to collect the dividend by being long, you end up losing money by being short.

    Lessons always seems to cost thing to do when thinking of shorting a stock, see if they pay dividends and approx when do they do so.
  7. bat1


    but if the stock still tanks I win:p
  8. Funny thread. Sorry, but you have no business in the equity markets if you believe you receive the div on short stock.
  9. bat1


    I'm here to learn and to ask Questions like many of us

    I guess your an expert and never ask
  10. Brighton


    I looked up the stock:


    Date of Record

    1.41 - QRTR

    Payable Date

    That's $2820 in dividends, so in addition to not knowing the rules, the poster chose a high yielding stock to short.

    I'd get out on Monday. Alternatively, the poster can learn the rules, hang on, and HOPE the stock drops about $1.40 ex-dividend. Sometimes they do, sometimes they don't...
    #10     May 11, 2013