LT Truckers declared a quarterly dividend on October 3 to record holders as of Tuesday, November 7. The dividend will be paid on Friday, November 31. Alexa purchased 500 shares of LT stock on November 3. Al sold 250 shares of LT stock on November 6. Who will receive the dividend payment on November 31?

Question

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Al will receive the dividend payment because he was the owner of the shares on the record date, November 7. Dividends are paid to whoever owns the stock on the record date, regardless of who owns the stock at the time of payment. Alexa purchased the shares before the record date but since Al sold his shares after the record date, he remains entitled to the dividend for those shares.

LT Truckers Declared a Quarterly Dividend on October 3 to Record