RE:Pay Day JAN 14th 2022 @ .1875 cents USD FYI: The record date is the day by which you must be on the company's books as a shareholder to receive the declared dividend. ... The payable, or payment date is when the company pays the declared dividend only to shareholders who own the stock before the ex-date.
FYI: Ex-dividend describes a stock that is trading without the value of the next dividend payment. The ex-dividend date or "ex-date" is the day the stock starts trading without the value of its next dividend payment. Typically, the ex-dividend date for a stock is one business day before the record date, meaning that an investor who buys the stock on its ex-dividend date or later will not be eligible to receive the declared dividend. Rather, the dividend payment is made to whoever owned the stock the day before the ex-dividend date.
KEY TAKEAWAYS
- Ex-dividend is when a company's dividend allocations have been specified.
- The ex-dividend date of a stock is the day on which the stock begins trading without the subsequent dividend value.
- Investors who purchased the stock before the ex-dividend date are entitled to the next dividend payment while those who purchased the stock on the ex-dividend date, or after, are not.
- The ex-dividend date occurs before the record date because a stock trade is settled "T+1" meaning that the record of that transaction isn't settled for one business day.
Understanding Ex-Dividend
A stock trades ex-dividend on and after the ex-dividend date (ex-date). If a trader purchases a stock on its ex-dividend date or after, they will not receive the next dividend payment. Since buyers aren't entitled to the next dividend payment on the ex-date, the stock will be adjusted lower by the amount of dividend by the exchange.1
When a company decides to declare a dividend, its board of directors establishes a record date. This is the date when a person must be on the company's record as a shareholder to receive the dividend payment. Once the record date is set, the ex-dividend date is also set according to the rules of the stock exchange on which the stock is traded. This usually means that the ex-date is one business day before the record date. For example, if a company declared a dividend on March 3 with a record date on Monday, April 11, the ex-date would be Friday, April 8, because that is one business day before the record date.1