Another date for you to consider as an investor is the dividend record date.
This is the date where the company looks to see who is on their list of investors and qualifies as the shareholders of record. The investors on this list will get the dividend cheque in the bank provided that they purchased their shares before the ex dividend date.
Here’s an example for you to clear things up...
Say you are a shareholder of XYZ Financial and to date you have accumulated 300 shares in the company. XYZ loves to reward their shareholders by returning some of the profits to them in the form of a dividend payment and this quarter is no different.
On August 28th after releasing financial results for the 3rd quarter, XYZ Financial’s Board of Directors declared a quarterly dividend payment of $0.63 per share. The dividend will be payable on October 29, 2012 to shareholders of record on October 2nd, 2012, with an ex-dividend date of September 28th, 2012.
So the record date in this case is October 2nd and it usually occurs a few days after the dividend ex date. So to get the dividend payment, you would have to purchase your shares on September 27th or before.
So that wraps up the record date... let’s move on to learn about some of the other important dates...