And if you held shares in the company, then sold them the day before the record date you won’t receive any dividend payout either. This is the date after which any new investors in the stock would not qualify for a dividend payout that’s already pending. But if you wait until the ex-dividend date to buy shares or the day after the ex-dividend date, then you wouldn’t be eligible for that round of dividend payments. So, if you own the stock the day before the ex-dividend date you’ll get the dividend payout. This date marks the first day that any new investors in the stock will not receive the dividend payment. Think of the declaration date as a “heads up” to investors. This is the date when a dividend payment is announced. Specifically, the key dividend dates to know are: If you plan to attempt a dividend capture strategy, then it’s important to understand how these dates work. Dividend Dates and Dividend PayoutsĬompanies don’t pay out dividends randomly instead, they follow a schedule for making these payments to investors. A handful of companies, known as Dividend Aristocrats and Dividend Kings, have lengthy track records of consistently increasing dividend payouts year-over-year but they’re the exception, rather than the rule. Payouts can increase or decrease, depending on the company’s profitability. Growth stocks, for example, tend to reinvest profits into expansion rather than paying them out to investors.ĭividend payouts aren’t the same across the board. A dividend represents a percentage of a company’s retained earnings that are paid out to shareholders. To understand dividend capture strategy, it’s important to have some background on dividends and how they work.
0 kommentar(er)
