What is Ex-Date, Ex-Dividend Date, Record Date?
Here are relevant dates you need to know that are related to the announcement and distribution of dividends by companies.
Dividend Declaration Date
The Declaration Date is simply the date the company makes the announcement that it is issuing dividends. During this date, the company also typically announces the ex-date, record date and payment date.
Ex-Date (or Ex-Dividend Date)
The Ex-Date, also called the Ex-Dividend Date, is the first day when buying a stock DOES NOT entitle the buyer to the dividends. Think of it as the first day you are “EX-cluded” from receiving dividends. Prior to this date, the stock trades cum-dividend or “with dividend.” From the ex-date onwards, anyone who buys the stock does not anymore have the right receive the announced dividend.
The Date of Record is when the company looks at its “records” or “books” to see who are the shareholders entitled to receive the dividend. Typically as long as you own the stock before the ex-date, your name will be “on record” and you will be entitled to receive the dividends.
The Payment Date is simply the date when the company disburses the cash dividend to stockholders on record. It is usually credited to one’s trading account or, alternatively, a check is sent to the stockholder.
Look! We have some more interesting and useful posts below for you to read:
- Stock Trading 101: Guide and Tutorial to Stocks
- Stock Discussion of all PSE Listed Firms
- Discussion Forum on Stock Trading
Note: This is the seventh part in Pinoy Money Talk’s primer on stock trading and investing, with a focus on investing in the Philippine stock market.