Dividend from 401k Ford stock fund

[penguin]

Hi - wondering if anyone has the answer to a simple question.  I also posted this in the employee forum.

 

The Ford stock fund in our 401k plans pays quarterly dividends based on "equivalent shares" that you own.  It is different from normal dividends in that it is paid on the ex-dividend day, rather than the pay date.

 

If you have any of the Ford stock fund,  you can see this is if you go into your account and check on activity.  This last dividend was paid into the plan on 4/25 which was the ex-date as opposed to the normal pay date which is June 1. 

 

This is highly unusual and I've asked NESC why this is and I kind of got a non answer.  

 

My question is -   If I elect to take the dividend in cash as opposed to reinvesting it, does that check get sent out right after the ex date, or does it get sent out with the normal checks on the pay date?

 

Thanks all.

[akirby]

Wow - you asked almost the same question 4 years ago.  If you’re allowed to take it as cash instead of reinvesting then my guess is you would get it on the normal payout date just like everyone else.

[penguin]

I had no idea what you were referring to until I checked.  Totally forgot about that.

 

No one has a 401k I guess based on all these responses.

Edited May 2, 2023 by penguin

[akirby]

2 hours ago, penguin said:

No one has a 401k I guess based on all these responses.

99.9999% just reinvest dividends then if you need cash just sell off the stock if you’re eligible to withdraw.