If you have for an example $50K in a PSA or HISA account and you have that same amount on the 30th of the month ie x-dividend date you will get the full amount of the interest payment the next month a few days later . My question is if you had of taken out say $5k after the first two weeks of the month say the 15th , do you receive any interest payment on that $5k for the first 15 days that it was in the account OR do you only receive an interest payment based on whats in the account on the 3oth ?
Thanks
Bill C
If any shares are sold before the ex-dividend date, then no distribution will be received for those shares, however, the ETF accrues interest daily, and thus its unit price increases each day up until the distribution is paid out. For example, since today is the ex-dividend date, the price has dropped to $50.02, but yesterday it was $50.20 (0.4% higher). 0.40% annualized for one year is around 4.8% (0.4% X 12 months). On December 15, shares were $50.13, an $0.11 premium to today's price, which represents close to half of the distribution. So in theory, some of the interest is received by way of share appreciation.
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