What are the Key Dividend Dates?
Dividends are the way by which a company returns back a part of its profits to shareholders. There are 4 important dates to keep in mind while holding a dividend-paying stock:
Declaration Date: The declaration date is the date when the board of directors announces and approves the payment of a dividend.
Ex-Dividend Date: This is the cutoff date to be eligible to receive the declared dividend. If you purchase the stock on or after this date, you will not receive the next dividend. Typically, the ex-dividend date is set one business day before the record date.
Record Date: The record date, also known as the date of record, is the date on which the investor must be listed on the company's books in order to receive a dividend.
Payment Date: This is the date on which the company distributes the dividend to the shareholders. It’s the day you actually receive the dividend in your account.
