If someone buys the shares of a scrip before the ex-date of the dividend decleared by the company and hold it till the record date… Then he is eligible for the dividend…
But whether it is confirmed that we will get the dividend amount at the payment date… Or is there a mechanism of choosing which shareholder is entitled for the dividend?
Curious and confused. What has broker got to do with passing on of dividends. On the record the company issuing the dividend will retrieve the data and pass on the same to the shareholders bank account. Not sure why this statement as to broker transfer?
There are certain scenarios (like for example BTST trades or when T+2 settlement hasn’t happened yet after the sale of shares on ex-date as explained in this support page) where the shares are in the broker’s pool account on the record date. Hence the dividend gets credited to the broker and then they pass it on to clients. These threads talk about this -
In the case of BTST trades, there has been a recent change in Zerodha’s policy and now dividends get credited directly to the client’s bank account. This is explained on this support page.