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First the dividend, please!

ÜThe months of April and May are usually known in Germany for a particularly rich dividend blessing. In the midst of the Corona crisis, however, this year is primarily about postponing general meetings and lowering or even canceling the dividends initially planned by the companies. But even though there should be no new records in the coming year, the companies will now distribute billions of euros from the profits in 2019. Many companies have a well-thought-out, long-term dividend policy to reward their loyal shareholders – even when things are not going well economically. Because in addition to price gains, dividends are an important source of returns in investors’ accounts. Such high payments also attract investors who only want dividends. These speculators sometimes only buy a share shortly before payday to sell the paper again soon, if the price trend allows it.

Because you no longer have to own a share to get the full dividend. As is so often the case on the stock market, the question is when the time is right. Who is entitled to dividends? In principle, there is no right to a dividend unless the general meeting decides on a distribution. The right then belongs to the investor who owns the security on the day of the general meeting. It is enough to buy a share on the stock exchange until the close of trading on this day, says Cord Gebhardt, managing director of the Frankfurt stock exchange.

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