In the previous section How to make money in stocks, we mentioned DIVIDEND as one way for you to grow your money in the stock market. This type of payout does not happen every day so you need to know some of the important dates and terms that are used to get your precious slice of the pie.
Date of declaration: This is the date when a company reports that it is issuing a dividend. This report also includes other important dates related with its release as shown in the succeeding terms.
Ex-dividend date: Starts the three-day period during which, if you buy the stock, you don’t qualify for the dividend. Just take note of the actual DATE! Starting from the ex-dividend DATE, anyone who buys the stock will not receive the announced dividend. If you were able to buy stock of a particular company the day before its announced ex-dividend date, then you qualify for a dividend.
Record date: The date of record is used to identify which stockholders qualify to receive the declared dividend. It is the date by which you must be on the company's books of record to qualify for the dividend.
Payment date: The date on which a company issues or distributes its dividend to shareholders. At last!
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