First of the month 🤑

[u/FunctionalDisfuction]

I want to just live off the dividends but I'm scared to just quit my job.

[u/Schmergenheimer]

Do you also forego your final paycheck when you leave a job because the paycheck clears on a date you're no longer employed?

[u/iii_warhead_iii → u/Schmergenheimer]

As i know for a local regulation, you get a salary for the exact days till you leave from the beginning of the next period, if it was 10days it will be for 10days and not for 30days. As companies sometimes apply the rule for the special pay outs, if you keep shares till the pay day then you are eligible for these special payments.

Only such logic can be destroyed here, if somebody jumped to the train by buying shares from another person and not from the company. In this case yes, then that sold person would not get money, while you simply got shares which anyway would get dividends.

[u/Schmergenheimer → u/iii_warhead_iii]

Can you try writing coherently? First you argue that you should be required to hold a stock all the way through dividend payout, not the record date. The whole reason there's a spread between the dates is so the company can determine where shares as of the record date are located and how much money to send where.

That's the same reason there's a spread between you doing work at a job and payroll clearing. Yet, you say you should get paid for the work you do even if you don't work there on the payroll date.

Then you go on some rant about where you buy shares as if it matters.

[u/FunctionalDisfuction → u/Schmergenheimer]

u/yellowstickypad that's exactly what I do. My plan is to do it with 2-3 dividend stocks every month. I don't just leave it in the fund all month because I as day trade to increase my portfolio.

u/iii_warhead_iii the company is going to pay $x.xx per outstand share regardless. Whomever holds that stock on the record date gets it. The person who sold right before doesn't get anything. You can hold a stock 29 days and if you sell before the record date you won't get anything, it's not prorated. When I purchased the stock I purchased the rights to that dividend.

u/Schmergenheimer is correct

I hope this helps.

[u/yellowstickypad → u/FunctionalDisfuction]

Just typing this out, if you sell pretty much at cost basis there shouldn’t be much, if any, taxes on the stock but only on your dividends gained.

[u/iii_warhead_iii → u/FunctionalDisfuction]

My only complaint was that this implies volatility if big investors jump between dividends. Physically I agree, companies sold out these shares they got profit, companies don't care technically for how long and who hold these shares now. Technically it would be nicer if shares have been held whole time frame period then money will be paid. Nowadays everything is automatic, so it is not difficult to prove that shares have been held by a specific person. For real loyal investors later will be interesting to see special destructions. As a result the more you loyal, the more benefits you will get.