What is ex-dividend date & date of record?

Ex-dividend date: The day on which the stock begins trading ex-dividend, or without the dividend. It is on or after this date that the dividend is not owed to a new buyer of the stock. Date of record: The day on which the company checks its records to identify shareholders of the company.

What is a record date?

The record date usually comes two days after the ex-dividend date, so all stock trades can settle and give the company full scope of who owned stock before the cutoff. Investors can note the record date on their calendars, but it's merely a company bookkeeping day for the executives.

How does the ex-dividend date work?

The ex-dividend date works similarly, and your shares are the tickets. You'll get the dividend payment if you own shares at least one day before the ex-dividend date. If you buy shares on or after the ex-dividend date, you won't get the dividend from that particular quarter. You don't need to hold your shares through the ex-dividend date.