The time line to understand the Dividend payment cycle
The time line below will help you understand the payment cycle.
Dividend Declaration Date:
These are the dates of the AGM and the board meeting where the dividend issue is approved.
Record Date:
The date the company chooses to look through the shareholder's register and make a list of all the shareholders who are eligible for the reward. The time between when the payout is declared and when it is recorded is usually 30 days.
Ex-Date/Ex-Dividend date:
The ex-dividend date and the record date are usually the same day in the T+1 settlement period. People who owned shares before the ex-dividend date are the only ones who can get the payment. India's stock settlement works this way because it is based on T+1. In other words, if you really want to get a profit, you need to make sure you buy the shares before the ex-dividend date.
Dividend Payout Date:
The date on which dividends are sent to owners on file with the company.
Cum Dividend:
Shares are said to be cum dividends until the date they no longer earn dividends.
|
Table of Contents : Corporate actions and effect on stock prices 2. Dividends - portions of profits made by the company 3. The time line to understand the Dividend payment cycle |
