Dividends Question

[Patres (Patrik)]

Hello everyone,

I do not trade for a long time but I have a maybe a silly question(s) about dividends. Either quarterly or monthly dividends, do I need to invest every single time or can I just invest once, keep the share and I will get paid anyway? So for example, I have a stock with monthly dividend 20p per one share. I will get that paid. Am I going to get 20p next month too without buying another share or do I need to buy another share to get 20p again? Or if I buy one share again next month (before the ex-dividend of course) I will have 2 shares now, will I get 40p because I have 2 shares or just 20p because I bought only one share that month. Please let me know because this question is in my head for last few weeks. Thank you

[Dave (Dave Smith)]

You continue to get dividends as long as you hold the share at the end of the day on the day before the Ex Dividend date. So for a monthly dividend you’d get a dividend every month for a long as you hold the share.

so in your example, if you just held one share you’d get 20p per month. If you bought another you’d start to get 40p per month