Q: Hi,
I was wondering if my interpretation of the timing of PSA's monthly payment is correct. My Investor's Edge account says for last month: "PURPOSE HIGH INTEREST SAVINGS FUND UNITS SAVINGS FUND UNITS DIST ON XXX SHS REC 07/28/23 PAY 08/08/23."
I take this to mean, if I hold the shares on 07/28 I will receive the dividend on 08/08. For this month, if I were to sell my PSA shares after 08/28/23, I would still receive the dividend in September. Do you think I have that correct?
Thank you. Michael
I was wondering if my interpretation of the timing of PSA's monthly payment is correct. My Investor's Edge account says for last month: "PURPOSE HIGH INTEREST SAVINGS FUND UNITS SAVINGS FUND UNITS DIST ON XXX SHS REC 07/28/23 PAY 08/08/23."
I take this to mean, if I hold the shares on 07/28 I will receive the dividend on 08/08. For this month, if I were to sell my PSA shares after 08/28/23, I would still receive the dividend in September. Do you think I have that correct?
Thank you. Michael
5i Research Answer:
There are two dates to consider, the record date (Aug 30) and the ex-distribution date (Aug 29). The record date is the legal settlemement date to determine who gets the payment. But the ex date is the day on which the fund trades without the right to the payment. For September's payment, if the fund is sold on or after Aug 29, the seller still gets the payment and the buyer does not. For last month, the ex date and record date were both July 28, so the statement in the question is correct. A sale on Jul 28 means the seller would still get the dividend and the buyer would not.