Written by:
Image
Paul Tracy

Paul has been a respected figure in the financial markets for more than two decades.

Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 2 million monthly readers. While there, Paul authored and edited thousands of financial research briefs, was published on Nasdaq. com, Yahoo Finance, and dozens of other prominent media outlets, and appeared as a guest expert at prominent radio shows and i...

View all posts
Updated October 7, 2020

What is the Dividend Declaration Date?

A dividend declaration date is the date on which a company announces an upcoming dividend payment, usually by issuing a press release a few weeks before the dividend is actually paid.

How Does the Dividend Declaration Date Work?

Let's assume you own 100 shares of Company XYZ. At the end of the quarter (say, March 30), Company XYZ calculates its financial performance. The board of directors thenreviews this information, including Company XYZ’s profits, and declares, via an April 30 press release, a $0.10 dividend per share for the quarter, payable on May 15. In this case, the dividend declaration date is April 30.

Why Does the Dividend Declaration Date Matter?

The dividend declaration date is one of several important dates to note when concerning dividend payments. The others include:

    * Record Date: This is the date on which a company reviews its books to determine its "shareholders of record." Investors listed as shareholders of record on this date will receive the firm's dividend payment.

    * Ex-Dividend Date: After the Record Date has been determined, then the ex-dividend date is assigned. The ex-dividend date for stocks is typically two business days prior to the record date. If an investor buys a stock before the ex-dividend date, then he or she will receive the dividend payment. If an investor purchases the stock on or after the ex-dividend date, then he or she is not entitled to receive the dividend.
 

Ask an Expert about Dividend Declaration Date
At InvestingAnswers, all of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Dividend Declaration Date.
Be the first to ask a question

If you have a question about Dividend Declaration Date, then please ask Paul.

Ask a question

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 2 million monthly readers.

If you have a question about Dividend Declaration Date, then please ask Paul.

Ask a question Read more from Paul

Read this next

Paul Tracy - profile
Ask an Expert about Dividend Declaration Date

By submitting this form you agree with our Privacy Policy

Share
close
Don't Know a Financial Term?
Search our library of 4,000+ terms