Tuesday, May 10, 2016

Can someone help me understand dividends?

I am new to investing and I bought 3 shares of Apple stock since it's fairly low in cost right now.

I bought last week (using RobinHood) and now I see that I already have Dividends that are being paid.

My understanding is that Dividends for a lot of stocks happen once every quarter. Can I really just buy right before the Dividend and receive that? I know there are tax implications, and I thought the stock always drops by it's dividend amount to prevent people from buying and selling right before and after the Dividend.

How long "before" the dividend payout do you have to buy before you are "qualified"? Wouldn't there always be a large influx of buyers right before the Dividends are paid out?

Thanks - and go easy on this noob :-)



Submitted May 10, 2016 at 11:11AM by bwassell http://ift.tt/1VRWEhs

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