I’m slowly trying to update my blog to get it current. The share counts are going to change but I have updated my Dividends page.
If you notice the color coding on the page, I’m trying to keep up with any new dividend declaration announcements that include a new raise. There is also a record date, ex-dividend date and payment date. I’m going to give clear definitions for all of these because they can be slightly confusing to a new investor. I’ve included a snapshot of Coca-Cola’s (KO) past dividend payments.
Dividend Declaration Date – This is the date that the company declares a new dividend (this one is straight-forward).
Ex-Dividend Date – This is the first day in which the stock trades without its dividend. That means if you purchase the stock on this date or after then you would not get the dividend. This date is also two business days before the record date.
Record Date – This is the date that the company must have you on record as holding the stock in order to receive the dividend.
Dividend Payable Date – This one is my favorite, the date that you actually get paid the dividend.
Why all these dates? Well, it takes a few days after purchasing a stock in order for the trade to settle.
What to remember – If you want to get the dividend, buy the stock before the ex-dividend date or 3 days before the record date and you are safe. If you are selling the stock and want the dividend, then sell the stock on or after the ex-dividend date.