What is the record date for a dividend?
In order for the shareholder of the stock to receive the dividend, the owner must be the owner on record on the record date (aka “date of record”). The record date is typically one business day after the ex-dividend date. If you are listed as the shareholder on the record date, then you can expect to receive the dividend that was previously declared. There is no financial statement impact on the record date.
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What is a dividend?
A dividend is when a company distributes profits to its shareholders. Typically, dividends are in the form of cash and are distributed when the company has excess cash that is not reinvested into the business. A company can also issue a stock dividend or property dividend.
What is the declaration date for a dividend?
The declaration date is when the Board of Directors would approve the dividend and announce the future dividend payment to shareholders. The declaration date is when the dividend becomes a liability for the company.
What is the ex-dividend date for a dividend?
The ex-dividend date is the day where the stock no longer is entitled to the next dividend payment that had been declared. The ex-dividend date occurs after the date of declaration but before the record date. The ex-dividend date is typically the day before the record date. There is no financial statement impact on the […]