The most common question asked even now, just a day before the distribution date is “If I buy BBIG stock now, will I get TYDE dividend?” The simple answer to this question is ‘Yes’. And in this article we explain how does this work?;
Disclaimer: Please confirm this with your stock broker to make sure that you WILL receive the dividend.
The Confusion
The major issue with the Cryptyde dividend is Vinco’s management has failed to keep its investors updated on this complex special dividend allocation. And confusions started to arise when Vinco released its first press release announcing the record date. “Each Vinco stockholder of record as of the close of business on May 18, 2022 will receive, on the distribution date, one share of Cryptyde common stock for every 10 shares of Vinco common stock held.”
And, when they delayed the distribution date (on May 25, 2022), the third paragraph from their press release created more confusion., as their wording suggests that anyone who buys the stock after the record date are not entitled to the dividend.
“For clarification regarding the record date and distribution date as it relates to the Cryptyde dividend, each Vinco stockholder of record on the record date will receive one share of Cryptyde common stock for every 10 shares of Vinco common stock held through the distribution date. However, if a stockholder sells shares of Vinco common stock after the record date they will not receive the Cryptyde dividend. Only holders of shares of Vinco common stock on the distribution date that were outstanding on the record date will be entitled to receive the Cryptyde dividend. Following the separation, Vinco stockholders will also receive cash in lieu of any fractional shares of Cryptyde common stock that those holders would have received after application of the 10:1 distribution ratio. No action is required by Vinco stockholders to receive the shares of Cryptyde common stock in the dividend distribution.”
extract from the press release dated may 25, 2022
Will I get the TYDE dividend?
Under usual circumstances, anyone who’s holds the stock on/before the record date is entitled to receive the dividend. But the TYDE dividend fall under the special dividend category where the dividend is worth more than 25% of the company’s stock price. In this case special rules apply – that are enforced by the exchanges and NOT the company.
The special rule dictates “If you sell the stock after the record date but before the ex-dividend date, your shares will be sold with a book entry sometimes called a “due bill,” which denotes that (though the company will pay the dividend to your account, if you are the shareholder of record on the date two business days prior to the record date), your account must, in turn, turn the amount of that dividend over to the buyer of your stock. Conversely, if you buy stock after the record date but before the ex-dividend date of a large special dividend, you are entitled to the dividend and will receive it via the due bill process.” And, this process is NOT overseen by Vinco Ventures. If you sell BBIG shares between May 18th (“record date”) and 29th June (“ex-dividend date”), you give away the right to own the dividend, and when you buy BBIG shares between these dates, you acquire the right to receive the divided from the seller. Your broker will deliver the dividend to the rightful owner, that is the person who has held the stock through the ex-dividend date.
Ex-Date and the ‘Due Bill’ Redemption date were updated on Nasdaq.
The Verdict
So the answer is yes, you should receive the Cryptyde (TYDE) dividend even if you buy the stock today (June 28, 2022) or tomorrow (June 29, 2022). But you must hold it through till Thursday (30th June).
