Dividend Eligibility: How Long do You Need to Own the Shares?

How long you want to own your shares will depend on what's your goal. If you bought a fully franked stock and want to receive the full dividend amount, you have to hold the stock for 45 days. This excludes the day you made the purchase and the day you sold the stock. More importantly the 45 day rule (plus 2 days) makes you eligible to receive franking credits, if your imputation credits entitlement totals more than $5000. The key is to own the shares in 45 days after the ex-dividend date. You will need 90 days for preference shares. Using the 45 day rule though will depend on the trading capital you are using.