Dividend Record Date

The dividend record date is one of several important dates to note when a company declares a dividend. The others include:

    * Declaration Date: 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.

    * 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.

   * Payable Date: A dividend payable date is the date on which a company pays a dividend to its shareholders of record.

These dates are important because they cause short-term price swings. For example,  dividend declarations generally attract buyers and drive prices up. When a stock “goes ex-dividend,” its price usually then falls, reflecting the fact that the dividend payment is in the past.