What is Dividend Payment Date?

Dividends are paid to the company's shareholders at the date of the dividend payout. In order to receive this payment, the investor must own the shares before the date of the record, known as the ex-present date. The investor, who owns shares at this date, is entitled to the upcoming dividend payment. Before issuing a dividend check, the Board of Directors must announce its intention to pay the dividend. This intention is declared on the date of the statement and generally recorded both the dividend amount and the date of the dividend payments. Before this date, shares are dividend cum or with dividend. At this date or after this date, the EX dividend shares or without dividends. If the shares are purchased at this date or after that date, the investor will not be entitled to the next planned dividend. The investor, who sells shares before this date, also does not receive the planned payment of dividend. Buy the shares just before the ex-present date in an effort to capture dividend payments with the intention of selling shares immediately after payment. This practice is known as playing a dividend system andIt can be a profitable approach to a very strong bull market. Under normal market conditions, the company's value will decrease after the Dividend Payment date. Reducing the assets of the company is usually appreciated by the warehouse value.

Most companies perform a quarterly dividend payment. Some companies apply annually. Cash dividends can be sent as a check or directly stored on the investor's account. Preferred shareholders are authorized for dividend payments before joint shareholders, but the date of payments dividends is the same for all.

Companies can also pay special one -off dividends for various reasons, including liquidation and related events. Special dividends can be paid in the form of cash or additional shares. Dividend disposable payments are announced by the Board of Dividends. These payments are sometimes classified as a "return of capital" and are not taxable.

dividends paid in the form of shares can be beneficial to the company and investor. If dividends are paid in stock, the company can use cash for other purposes. The investor does not have to pay a dividend shares tax until it is sold. The shareholder who is looking for a current income can sell the stock at any time, allowing the Dividend Dividend Date-it-IT-YourSelf.