Pocket Option: When can stock dividends be sold

Learning

10 April 2025

11 min to read

When can stock dividends be sold: Optimal strategy for Vietnamese investors 2025

The timing of selling stocks received as dividends can determine the effectiveness of your investment in the Vietnamese stock market. From legal regulations to profit optimization strategies, this article will provide comprehensive information to help you make informed decisions and maximize value from stock dividends.

In the Vietnamese stock market, receiving dividends in the form of shares is becoming a popular trend, especially in the banking and real estate sectors. This raises an important question: when can stock dividends be sold? In 2024-2025, with market fluctuations and regulatory changes, the answer to this question has become more urgent for all investors.

Understanding stock dividends in the Vietnamese market

Stock dividends are a form of companies issuing additional shares to distribute to existing shareholders instead of paying in cash. This is not only a way for companies to retain capital for reinvestment but also a strategy to increase liquidity for stocks in the market.

In Vietnam, data from HoSE shows that more than 65% of listed companies have applied this form of dividend payment in the past 3 years. In particular, banking “giants” such as VCB, BID, CTG regularly pay dividends at rates of 15-25%, while real estate businesses like VIC, NVL, KDH also frequently apply this policy.

Characteristics	Cash Dividends	Stock Dividends
Liquidity	High, received immediately	Lower, requires time to sell
Impact on stock price	Price decreases according to dividend ratio	Decreases according to dilution ratio
Tax	5% on dividend value	Only pay 0.1% when selling
Company ownership	No change	No change (proportionally)

When receiving stock dividends, the most common question is: when can dividend stocks be sold? The answer is not simply a specific time point, but depends on many legal factors, the company’s situation, and your personal investment strategy.

Legal regulations on selling stocks received as dividends

Regulations of the State Securities Commission

According to Vietnam’s Securities Law 2019 and the latest guiding documents, stocks received as dividends can in principle be traded immediately after being recorded in the account. However, some specific regulations to note:

For insiders (Board of Directors, Board of Management, Supervisory Board): Cannot trade during the “blackout period” – usually 30 days before the financial statement announcement
For major shareholders (owning 5% or more): Must report and disclose information at least 3 working days before trading
In case of restricted transfer shares: Comply with the term specified in the company’s charter or GMS resolution

Understanding these regulations will help you accurately answer the question of when can stock dividends be sold in specific cases, avoid legal violations, and optimize your trading strategy.

Minimum holding period according to regulations

One of the major concerns of investors is whether there is a mandatory regulation on the minimum holding period for stocks received as dividends. Below is detailed information by category:

Subject	Minimum holding period	Legal basis
Regular investors	No limit (can sell immediately after credited to account)	Securities Law 2019
Insiders	Restricted trading during “blackout period”	Circular 96/2020/TT-BTC
Strategic shareholders	According to commitment with the company (usually 1-3 years)	Company Charter
ESOP shares	Usually 1-2 years according to regulations	BOD Resolution

The Pocket Option platform provides tools to track the latest legal regulations, helping Vietnamese investors easily grasp changes in regulations related to stock dividend trading in Vietnam, thereby making correct and timely decisions.

When can stock dividends be sold: Influencing factors

Influence of issuance timing on selling rights

To understand clearly when you can sell dividend stocks, you need to grasp the stock dividend distribution process in Vietnam:

Timeline	Event	Meaning
Declaration Date	BOD/GMS approves dividend payment plan	Information can impact stock price
Ex-Dividend Date	First day stock trades without dividend rights	Buying from this date will not receive the announced dividend
Record Date	Date determining list of shareholders to receive dividends	Must own stock before this date to receive dividend
Payment Date	Date of issuing new shares and recording in account	Dividend stocks can be sold after this date
First Trading Date	First day new shares are allowed to trade	Usually coincides with or 1-2 days after Payment Date

In reality in Vietnam, from the announcement date to when dividend shares can be sold usually takes 20-45 days. This time depends on the company’s working process, VSD (Vietnam Securities Depository) and SSC.

Tax and financial factors to consider

Deciding when to sell dividend stocks needs to consider many financial factors, especially tax issues:

Securities transfer tax: 0.1% on total transaction value (regardless of profit/loss)
Cost basis calculation: Cost basis of dividend stocks is recalculated using the weighted average method
Dilution effect: Stock price usually decreases corresponding to the dividend ratio
Transaction costs: Brokerage fees (usually 0.15-0.25%) also affect the efficiency of selling immediately or holding

Real example: If you own 1,000 ABC shares with a cost basis of 20,000 dong/share, and receive a 15% stock dividend (150 new shares). The new cost basis will be recalculated: [(1,000 × 20,000) + (150 × 0)] ÷ 1,150 = 17,391 dong/share.

The Pocket Option platform provides automatic tax and cost basis calculation tools, helping Vietnamese investors make informed decisions about when to sell dividend stocks.

Optimal strategies when selling dividend stocks

After understanding clearly when dividend stocks can be sold, the next important question is: when to sell to optimize profit? Below are effective strategies applied in the Vietnamese market:

“Sell immediately when possible” strategy

According to data from leading securities companies in Vietnam, about 40-45% of individual investors choose to sell dividend stocks immediately after receiving them. The main reasons include:

Take advantage of the “first day” effect – Statistics show 65% of dividend stocks usually increase slightly by 1-3% on the first trading day
Avoid market risk – Especially during periods of strong market fluctuations like 2024-2025
Switch to new investment opportunities – With markets strongly differentiating, many stocks in technology, clean energy sectors are creating new opportunities
Personal cash flow needs – Create liquidity for short-term financial plans

This strategy is particularly suitable for stocks of companies with unstable business situations or in industries facing difficulties such as retail, tourism after the Covid-19 period.

“Strategic holding” strategy

Conversely, about 30% of investors – mainly long-term investors – choose to hold dividend stocks because:

Benefits	Applicable to companies	Typical examples
Compound growth	Businesses with stable growth history	VCB, FPT, VNM
Tax advantages	Businesses paying regular dividends	REE, MSN, HPG
Benefit from capital increase	Businesses expanding, with new projects	VHM, MWG, PNJ
Accumulate voting rights	Well-governed businesses with long-term prospects	VIC, BID, CTG

According to analysis by experts at Pocket Option, the holding strategy has brought an average return of 18-25%/year for long-term investors in banking and technology stocks in Vietnam during the 2020-2024 period.

“Selling in parts” strategy

The most flexible strategy, applied by about 25% of investors, is selling dividend stocks in parts at different time points:

Allocation	Selling time	Reason
30-40%	As soon as stocks hit account	Recover part of capital, reduce risk
30%	After 1-3 months	Wait for better price opportunities after market absorbs the issuance
30-40%	Hold long-term (>6 months)	Invest in company’s long-term growth potential

When do stock dividends arrive in account and the following process

The question “when do stock dividends arrive in account” is a top concern for investors. The detailed process in Vietnam proceeds as follows:

GMS/BOD approves the plan to issue shares to pay dividends
Company submits application for permission to SSC (if it’s a large issuance)
SSC approves the plan (usually takes 7-15 working days)
Company announces information about the last registration date (usually after 5-10 working days)
Ex-dividend date (usually 1 working day before the last registration date)
Last registration date (finalizing list of shareholders to receive dividends)
VSD allocates rights and confirms the list (5-7 working days)
Company completes issuing new shares
New shares are recorded in account (usually 10-15 days after the last registration date)
New shares are allowed to trade (usually same day or 1-2 days after arriving in account)

In Vietnam, the question of how long before stock dividends can be sold usually has the answer: 12-20 working days after the last registration date, depending on the working process of each company and regulatory agency.

Experts from Pocket Option recommend investors should follow official announcements from their securities company to know exactly when shares arrive in account and can be traded.

Analysis of timing for selling dividend stocks in Vietnam

To optimize profits when selling dividend stocks, Vietnamese investors should analyze the following market factors:

Research on price movements after receiving dividends

Statistical data from stock dividend distributions on HOSE and HNX in the past 3 years shows some characteristic patterns of price movements:

Time period	Common trend	Occurrence rate	Optimal strategy
First trading day	Increase 1-3% compared to adjusted price	65%	Sell immediately if no long-term plan
1-5 days after arriving in account	Decrease 2-5% due to selling pressure	70%	Avoid selling during this period
2-3 weeks after arriving in account	Recovery to initial price level	60%	Good time to sell if missed the first day
1-3 months after arriving in account	Follow general market trend	80%	Decide based on technical analysis

A common strategy used by professional traders on Pocket Option is “3-5-8”: sell 30% of shares on the first day, 50% after 5 trading days (if market recovers), and the remaining 20% after 8 sessions or hold long-term.

Analysis of the impact of cycle and seasonal factors

The Vietnamese stock market is also influenced by seasonal factors, affecting decisions to sell dividend stocks:

January Effect: Market usually rises in January – a good time to sell dividend stocks
Pre-Lunar New Year Effect: Market usually vibrant 2-3 weeks before Tet, creating opportunities to sell at good prices
MSCI/FTSE Review Effect: Stock prices can fluctuate strongly during portfolio restructuring periods (March, June, September, December)
Quarterly Results Effect: Prices usually rise before announcing positive business results (April, July, October, January)

Data from Pocket Option shows selling dividend stocks in January, April, October usually brings better results compared to other months of the year in the Vietnamese market.

Experience from Pocket Option: Maximizing profits from stock dividends

As a leading financial trading platform, Pocket Option has compiled experience from thousands of Vietnamese investors to provide valuable recommendations on optimizing profits from stock dividends:

Portfolio allocation strategy by industry

Based on analysis of stock dividend distributions in Vietnam during 2020-2024, Pocket Option provides recommendations on selling strategies by industry group:

Industry	Optimal selling strategy	Reason
Banking	Medium-long term holding (3-12 months)	Dividend stocks are often issued to increase charter capital, supporting credit growth
Real Estate	Mixed strategy: sell 50%, hold 50%	Depends on real estate cycle, currently recovering after difficult period 2022-2023
Retail, Consumer	Short-term selling (1-5 days after arriving in account)	High competitive pressure, thin profit margins in inflation context
Technology, Telecom	Long-term holding (>6 months)	Benefit from digital transformation trend, high growth potential

“With banking stocks like TCB, MBB, ACB – units that regularly pay stock dividends at high rates (15-25%), we find that medium-term holding strategies usually bring 15-20% better returns than selling immediately,” shared by an analyst from Pocket Option.

Optimizing taxes and transaction costs

An important aspect when deciding when dividend shares can be sold is optimizing taxes and transaction costs:

Combine orders: Sell dividend stocks together with other stocks you want to exit to reduce transaction fees
Calculate opportunity cost: Compare potential profits from holding with opportunity costs when switching to other investments
Optimize cost basis: If holding stocks at different price levels, consider selling lots with high cost basis first to reduce taxes
T+ Strategy: Utilize T+2.5 regulation to optimize cash flow and investment opportunities

The Pocket Option platform provides cost-benefit analysis tools helping investors make smart decisions about when to sell dividend stocks, based on tax factors, transaction fees and opportunity costs.

Conclusion: Building a personalized strategy

There is no simple answer to the question of when stock dividends arrive in account and when to sell. Each Vietnamese investor needs to build their own strategy, based on:

Personal financial goals: are you investing for long-term accumulation or creating passive income?
Risk appetite: do you prioritize capital preservation or accept risk to seek higher returns?
Company assessment: business prospects, corporate governance and development strategy
Market context: economic cycle, industry trends and market sentiment
Personal cash flow needs: do you need cash immediately or can continue investing?

Understanding clearly how long before stock dividends can be sold and building an appropriate selling strategy can make a big difference in long-term investment efficiency. Sometimes, the decision to hold a dividend stock for 3-5 years can bring returns many times higher than selling immediately.

Pocket Option not only provides an advanced trading platform but also accompanies Vietnamese investors through in-depth analysis tools, training, and consultation, helping you become more confident in making investment decisions and maximizing returns from your portfolio.

Remember that the stock market always carries risks, and no investment strategy is perfect in all situations. Success comes from continuous learning, adapting to changing market conditions, and applying discipline in managing your investment portfolio.

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FAQ

Can stock dividends be sold immediately after receiving them?

Basically, stocks received as dividends can be sold as soon as they are recorded in your securities account and authorized for trading. In Vietnam, this usually occurs 10-15 working days after the record date. If you open your trading application and see that the number of shares has increased, check notifications from your securities company to confirm that they are tradable. Insiders or major shareholders must comply with special regulations regarding trading times.

How to calculate the cost basis for stocks received as dividends?

The cost basis of dividend stocks is calculated using the weighted average method. Specific example: If you own 1,000 shares with a cost basis of 25,000 dong/share, and receive a 20% stock dividend (200 new shares), the new cost basis will be: [(1,000 × 25,000) + (200 × 0)] ÷ 1,200 = 20,833 dong/share. This is significant when you calculate actual profit/loss and plan for taxes, although securities transfer tax in Vietnam is currently 0.1% on total transaction value, regardless of profit/loss.

Analysis of stock dividend selling strategies in the current Vietnamese market?

There are three main strategies in the Vietnamese market: (1) "Sell immediately" - suitable in declining markets or when cash flow is needed; (2) "Long-term holding" - effective with blue-chip stocks like VCB, FPT with sustainable growth potential; (3) "Combined strategy" - sell 30-40% immediately, 30% after 1-3 months and hold the rest long-term. Analysis of 2020-2024 shows that for banking and technology stocks, medium-long term holding strategies have brought average returns of 18-25%/year, far exceeding returns from selling immediately (8-12%/year).

What tools does Pocket Option provide to optimize dividend stock selling decisions?

Pocket Option provides many practical tools for Vietnamese investors to manage stock dividends: (1) Corporate event calendar - accurately track dividend distribution timelines; (2) Technical analysis tools - identify price movement patterns after receiving dividends; (3) Automatic tax and cost basis calculators; (4) Smart price alert system - set optimal selling price thresholds; (5) In-depth industry analysis reports - evaluate long-term growth potential of companies. In particular, the platform also provides simulations of different market scenarios to help investors make informed decisions.

What are the most common mistakes when selling dividend stocks in Vietnam?

Common mistakes include: (1) Selling hastily as soon as the market shows signs of decline - statistics show 70% of investors who sell in the first few days often miss the 5-8% increase in the following 2-3 weeks; (2) No clear strategy - making selling decisions based on emotions rather than analysis; (3) Ignoring tax factors and transaction fees - can reduce actual profits by 1.5-2%; (4) Not monitoring company information - selling just before positive news; (5) Applying the same strategy for all types of stocks - not distinguishing industry characteristics and business cycles. Pocket Option recommends investors build a structured selling strategy, based on analysis rather than crowd reactions.