In addition to the payment date, you have to look at the other times when the dividends are managed. There are three specific dates to watch for:
- The Declaration Date - The declaration date is the time when the business will announce that a dividend is going to be sent out. This date should be at least a week before the record date.
- Record Date - The record date is when the investors are listed on the record books. You need to have the stock before that record date if you are to profit from a dividend.
- Ex-Dividend Date - This ex-dividend date takes place about a day before the record date. You will not get the next payment after paying the money for the stock before that date. The seller would be paid the dividend. You will receive the dividend if you buy the stock before that date. It can take two weeks after the other two dates go by for the dividends to be paid.
Such dates are organized to both encourage people to invest in a stock and to make it easier for your choice to grow in value. More importantly, these dates are arranged so the people who have been supporting the stock for the longest time will actually reap the profits that are being made available.
