Saturday, January 3, 2015

How to Read Dividend History



Ex-Date or Effective Date - A stock trades ex-dividend on or after the ex-dividend date (ex-date). At this point, the person who owns the security on the ex-dividend date will be awarded the payment, After the ex-date has been declared, the stock will usually drop in price by the amount of the expected dividend.

Type -  Dividends may be paid  in the form of cash, stock or property.

Cash Amount  Amount paid to stockholders, normally out of the corporation's current earnings or accumulated profits.

Declaration Date - The date on which the next dividend payment is announced by the directors of a company. This statement includes the dividend's size, ex-dividend date and payment date. It is also referred to as the "announcement date"

Record DateOn the record date, a company looks to see who its shareholders or "holders of record" are. Essentially, a date of record ensures the dividend checks get sent to the right people.

Payment DateThe date on which a declared stock dividend is scheduled to be paid. Only those shareholders who bought the stock before the ex-dividend date receive the dividend on the date of payment (payable date)

Definitions found at: http://www.investopedia.com/


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