When a publicly traded company awards a dividend to share holders of
common stock as of a certain date, does it matter how long a holder
has owned the stock?  Is it possible to simply buy stocks the day
before dividends are awarded, collect the dividend and then re-sell
the stocks the following day?

Davinoadam,

<When a publicly traded company awards a dividend to share holders of
common stock as of a certain date, does it matter how long a holder
has owned the stock? Is it possible to simply buy stocks the day
before dividends are awarded, collect the dividend and then re-sell
the stocks the following day?>

When a company declares a dividend, it sets a record date when you
must be on the company's books as a shareholder to receive the
dividend.


From the SEC website:

To determine whether you should get cash and most stock dividends, you
need to look at two important dates. They are the "record date"  and
the "ex-dividend date.

?When a company declares a dividend, it sets a record date when you
must be on the company's books as a shareholder to receive the
dividend. Companies also use this date to determine who is sent proxy
statements, financial reports, and other information.?

?Once the company sets the record date, the stock exchanges or the
National Association of Securities Dealers, Inc. fix the ex-dividend
date. The ex-dividend date is normally set for stocks two business
days before the record date. If you purchase a stock on its
ex-dividend date or after, you will not receive the next dividend
payment. Instead, the seller gets the dividend. If you purchase before
the ex-dividend date, you get the dividend.?

Here is an example:

Declaration Date   7/27/2004
Ex-Dividend Date    8/6/2004 
Record Date        8/10/2004
Payable Date       9/10/2004


?On July 27, 2004, Company XYZ declares a dividend payable on
September 10, 2004 to its shareholders. XYZ also announces that
shareholders of record on the company's books on or before August 10,
2004 are entitled to the dividend. The stock would then go ex-dividend
two business days before the record date.?

?In this example, the record date falls on a Tuesday. Excluding
weekends and holidays, the ex-dividend is set two business days before
the record date or the opening of the market ? in this case on the
preceding Friday. This means anyone who bought the stock on Friday or
after would not get the dividend. At the same time, those who purchase
before the ex-dividend date receive the dividend.?

SEC
http://www.sec.gov/answers/dividen.htm


I hope the information provided is helpful!

Best regards,
Bobbie7

That answers my question.  Thanks you.