am i right in thinking that when dividends are paid net that basic rate tax has already been deducted.

eg. veridian goes ex dividend next week. share price at moment is 558.00, dividend paid is 23.38(net).

based on 1000 shares, taking into account dealing costs and stamp duty if the share price took less than an 18p drop after next wed you would still be in profit.

Dividends are paid net of tax and you get a tax credit of 10% of the gross. If you are a basic rate tax payer, you have no more tax to pay. If you are a higher rate tax pay you have an additional 22.5 % to pay.

Ive not checked you figures and dont forget the spread tends to make it harder - but in theory you are right.

I have purchased shares for the dividend, but if before they go ex div they go up so much that the profit far exceeds the div, I will sell and not wait for the divi.

thanks for your reply. you are very helpfull.

i noticed that it looks like shares only go ex div on a wednesday