Posted On: 12/04/2014 5:43:50 PM
Post# of 30066
I would expect a tiered distribution based on how long a shareholder has held shares would be not only be difficult and costly to implement, but would expose the company to a flurry of class-action lawsuits from investors who didn't agree with the company's treatment of different shareholders based on length of ownership.
As such, dividends paid in a spin-off or diagnostic sale will almost certainly be based on ownership at the close of a specific date (the ex-dividend date), as is done with traditional dividend payouts.
Long-term shareholders who have built up a larger share position will be rewarded more than those who jump in right before the dividend date, as it should be.
Does anyone have knowledge of a tiered dividend distribution based on length of ownership having been done by any company in the past?
As such, dividends paid in a spin-off or diagnostic sale will almost certainly be based on ownership at the close of a specific date (the ex-dividend date), as is done with traditional dividend payouts.
Long-term shareholders who have built up a larger share position will be rewarded more than those who jump in right before the dividend date, as it should be.
Does anyone have knowledge of a tiered dividend distribution based on length of ownership having been done by any company in the past?
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