Question

24-Steve purchased 300 shares of Delta stock on May 9. On May 15, he purchased another 300 shares and then on May 22 he purchased a final 400 shares of Delta shares. The company declared a dividend of $1.60 a share on April 30 to holders of record on Friday, May 23. The dividend is payable on June 2. How much dividend income will Steve receive on June 2 from Delta shares?

Answer 1

Answer : The Dividend Record date of an investment dividend refers to the date that the corporation's board of directors sets as the deadline for investors to be counted on the company's books. Hence Mr Steve has total no of shares as on May 23 as below :

Date of shares Purchase	Number of shares
09-May	300
15-May	300
22-May	400
Total Number of shares Owned Before Dividend Record Date	1000

Dividend Declered date	Dividend Record Date	Dividend Payable
30-Apr	23-May	02-Jun

The Dividend per share $ 1.60 declered on April 30 But Divindend is payable on Jun 02.

Hence Total Dividend Received = Total Number of shares Owned Before Dividend Record Date*Dividend per share

Total Dividend Received by Mr Steve is = 1000 Shares * $1.60 = $1600

Final answer is $1600