When a company announces a dividend, it sets three important dates. Understanding these tells you whether you’re eligible to receive the dividend and when the money will reach you.
- Record Date – The company fixes a record date to determine which shareholders are eligible for the dividend. If your name appears in the company’s shareholder register on this date, you receive the dividend.
- Ex-Dividend Date – This is one trading day before the record date. To be on the shareholder register by the record date, you need to have bought the shares before the ex-dividend date. If you buy on or after the ex-dividend date, the shares settle too late for you to be counted.
- Payment Date – This is when the dividend is actually credited to your linked bank account. It is usually a few weeks after the record date.
Quick example :
| Date | What happens |
| Record Date | 20th Jan |
| Ex-Dividend Date | 19th Jan |
| Payment Date | 5th Feb |
If you hold the shares on 18th Jan or earlier, you’re eligible. If you buy on 19th Jan or later, you miss this dividend.
Easy & quick
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