DiviDates: Important Dividend Dates
Understanding the timeline of dividend payments is crucial for investors seeking to optimize their investment strategies. Dividend dates play a pivotal role in determining when shareholders receive dividend payments and who is eligible to receive them. In this guide, we will delve into the important dividend dates every investor should know.
- Declaration Date: The date on which a company’s board of directors declares its intention to distribute a dividend. On this day, the company specifies the dividend amount, the record date, and the payment date.
- Ex-Dividend Date: The date on or after which a stock buyer will not receive the declared dividend. In other words, to receive the upcoming dividend payment, an investor must purchase the stock before the ex-dividend date. If the stock is purchased on or after the ex-dividend date, the buyer will not receive the dividend.
- Record Date: The specific date determined by a company to determine which shareholders are eligible to receive the declared dividend or other distribution. It is typically set one day after the ex-dividend date. Shareholders who hold the stock on the record date are entitled to receive the declared dividend.
- Payout Date: The date on which a company distributes dividend payments to eligible shareholders.