matin schreef op 31 augustus 2023 08:33:
Record Date vs. Ex-Dividend Date: What's the Difference?
By CHRISTINA MAJASKI Updated April 15, 2023
Reviewed by ANDY SMITH
Fact checked by JIWON MA
Record Date vs. Ex-Dividend Date: An Overview
The record date, or day of record, and the ex-dividend date of a stock are both important dates relating to stock purchases, reporting, and the dividend payout process. These dates determine which investors will receive dividends. The other two dates in the process are the declaration date (the day the dividend is announced) and the payable date (the date dividends are distributed).
Companies use dividends to distribute profits to shareholders and may pay out dividends in several different ways, including cash dividends, stock dividends, or property dividends. Cash dividends are the most common type of disbursement and are typically sent to stockholders via check or direct deposit. Stock dividends are paid out in the form of company shares.
KEY TAKEAWAYS
An ex-dividend date is the day on which a stock trades without the benefit of the next scheduled dividend payment. Instead, the dividend is paid to the previous owner.
The ex-dividend date is the day before the trade's record date.
The record date finalizes the transfer of the stock's ownership. The new buyer is now the owner of record and is entitled to any dividends.
The record date is set by the board of directors of a company and refers to the date by which investors must be on the company's books in order to receive a stock's dividend.
An ex-dividend date is set by stock exchange rules.
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A stock's price usually drops by the amount of the declared dividend on the ex-dividend date.