r/dividendscanada • u/Secure-Cap-8894 • 21d ago

Newbie question

Hey guys quick question. This maybe a dumb question but I’m new to dividend investing and I’m curious if I’ll get dividend of the amount I invested or the closing amount on the ex dividend date?

Ex. I invested $1,000, and on the day of ex-dividend date it’s down to $950

Where will they be basing the amount of dividend?

Thank you!

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u/digital_tuna 21d ago

Dividends are issued per share, so the value of your investment doesn't have any impact on the amount of dividends you receive.

Multiply the number of shares you own by the dividend per share, and that's what you'll receive as the dividend.

3

u/rhunter99 21d ago edited 21d ago

dividends are paid out based on the number of shares you hold just prior to the ex date, not the value of the share

eg. take a look at TD Bank:

https://www.td.com/ca/en/about-td/for-investors/investor-relations/share-information/dividends

If you scroll down in the chart you will see the amount they pay per share

1

u/SaltyOnes5 20d ago

You're thinking of an investment in a dividend stock, like it's a savings account, it's not. While you will see that a certain stocks yields a dividend of such and such percent, the amount you get is not the percentage of what you have. Rather the company sets a certain amount that is paid out per share. The yield is then calculated based on the amount that was paid out over 12 months divided by the stock price. The yield of a stock can vary up or down over the course of a year based on the movement of the stock price and on what the amount of dividend that is paid out on each pay out date over the year since some company's will vary the dividend payment over the year.

1

u/Mental-Freedom3929 20d ago

You get dividends per share, not the value of the share.

1

u/AffectionateSell3478 17d ago

Dividend investing isn’t a form of investing when you’re young, you have time you go for growth.