I will give you the information about what you can encounter in the STOCK MARKET.
REGULAR DIVIDEND
- Paid out on a regular basis. This could be on a quarterly, semi-annually or a yearly basis.
SPECIAL DIVIDEND
- Those that are given not on a typical recurring time as the regular dividends. This happens when a certain company earns more than they expect in a particular period and they want to share a piece of that "extra" pie to its shareholders.
DECLARATION DATE
- This is the day that the Board of Directors announces their intention to pay dividends to shareholders. During this date, the ex-dividend date, record date and payment date will also be announced. This is usually a month before the ex-dividend date.
EX-DATE or EX-DIVIDEND DATE
- This date is like the "boundary" to identify those entitled to receive dividends. If you buy the shares of a company on an announced Ex-dividend date, then you are no longer entitled to receive such dividends. You have to remember that in order to receive the dividends, you have to buy the share of that company at least one day before the ex-dividend date.
RECORD DATE
- Companies need some time to record and reconcile the list of shareholders who will receive the dividends. Usually, the record date is set at three days or more after the Ex-Date. You can actually sell your shares between the ex-dividend date and the record date and still be entitled to dividends from that company.
PAYMENT DATE
- this is the date when investors owning such stokcs celebrate because the dividends are actually paid to them. Shareholders may either redeem the cash dividends or use them to buy more shares.
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