When Should You Buy a Stock to Get the Dividend? A Simple Guide for PSX Investors

ex dividend date
Posted by: Jabran Kundi 0

When Should You Buy a Stock to Get the Dividend? A Simple Guide for PSX Investors

It’s earnings season in the Pakistan Stock Exchange (PSX), and that means one thing for many investors: dividends are coming.

But with dividends comes the age-old question:

“When do I need to buy the stock to be eligible for the dividend?”

Unfortunately, PSX doesn’t make this as straightforward as it should be. Unlike other markets where the ex-dividend date is provided, companies in PSX usually only announce the Book Closure dates in their notices. This helps them stay compliant, but leaves retail investors confused and second-guessing.

Let’s clear that up.


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What is a book closure date?

Think of it as the cutoff point. When a company announces a dividend, it also announces a Book Closure period. This is when the company “closes” its shareholder register to prepare a final list of investors who will receive the dividend.


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To be on that list, your name must appear on the company’s share register at the start of the Book Closure.

Simple enough, right? But there’s a twist.

The T+2 settlement rule

PSX follows a T+2 settlement cycle, which means that when you buy a stock, it officially gets transferred to your name two working days later.

So if you buy a stock today, it’s not really “yours” on paper until two working days after the trade date. And if your name isn’t on the register by the time the Book Closure begins, you won’t get the dividend.

This is where the Ex-Dividend Date comes in.

What is the ex-dividend date?

In most global markets, the ex-dividend date is clearly stated and marks the first day the stock trades without the dividend. If you buy the stock on or after the ex-dividend date, you don’t get the dividend.

But in Pakistan, since it’s not announced by the company, you have to calculate it yourself.

How to calculate the ex-dividend date in PSX?

Here’s the simple rule of thumb:

Ex-Dividend Date = Book Closure Start Date – 2 working days
Last Day to Buy for Dividend = Ex-Dividend Date – 1 day

But for simplicity, just subtract 3 working days from the Book Closure Start Date. That’s your last chance to buy the stock and still be eligible for the dividend.

A real example: Colgate Palmolive (COLG)

Let’s say Colgate (COLG) declares a dividend of Rs. 29.50 and announces:

Book Closure Start Date: September 19, 2025 (Friday)
“Shareholders whose names appear in the Register on September 18, 2025, will be eligible.”

Here’s what you need to do:

  • Because of T+2, the stock must be in your name by September 18
  • That means you must buy it by September 16 (Tuesday) at the latest
  • If you buy on or after September 17 (Wednesday), you’ll miss out on the dividend

Key takeaway

Whenever a company announces a dividend on the PSX:

  1. Look for the Book Closure Start Date
  2. Subtract 3 working days
  3. That’s your last day to buy the stock to receive the dividend

If you buy even one day too late, your name won’t make it to the shareholder register in time.

As PSX modernizes, we may eventually start seeing ex-dividend dates in official announcements, just like other global markets. But until then, knowing how to calculate it yourself gives you an edge and helps you make sure you don’t miss out on the dividends you deserve.

If you found this helpful, share it with fellow investors and tag someone who always gets confused around dividend time!

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →

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