In: Finance
Steve purchased 300 shares of Delta stock on May 9. On May 15, he purchased another 300 shares and then on May 22 he purchased a final 400 shares of Delta shares. The company declared a dividend of $1.60 a share on April 30 to holders of record on Friday, May 23. The dividend is payable on June 2. How much dividend income will Steve receive on June 2 from Delta shares?
Dividend income = (Shares purchase on May 9 + Share purchase on May 15) * Dividend
= (300 + 300) * $1.60
= $960
{Steven eligible for dividend on the stock on May 9 and May 15. Those purchase May 22 will not receive because they were not 2 working days before declaring the dividend or which is after the record date of May 23.)