Question
When are stock dividends paid?
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10th Nov 2009 by Daniel Cross, ChFC
Dividends are usually paid out when a company can't find a better way to invest their money for growth purposes and so share it with stock holders. There are paid on a quarterly basis and will be paid on a relatively predictable schedule. For example: If XYZ company has paid a dividend on March 1st, they will pay out on June 1st, September 1st, and December 1st. In order for a shareholder to take part in the dividend, they most own the stock 3 days prior to the record date in order to take advantage of that quarter. in other words, if a company sets a record date of February 25th with a payout date of March 25th, then an investor will need to buy the stock no later than February 22nd. February 23rd would be known as the ex-dividend date in which anyone that buys at that point will not get the dividend payment for March 25th.
Dividends are usually paid out when a company can't find a better way to invest their money for growth purposes and so share it with stock holders. There are paid on a quarterly basis and will be paid on a relatively predictable schedule. For example: If XYZ company has paid a dividend on March 1st, they will pay out on June 1st, September 1st, and December 1st. In order for a shareholder to take part in the dividend, they most own the stock 3 days prior to the record date in order to take advantage of that quarter. in other words, if a company sets a record date of February 25th with a payout date of March 25th, then an investor will need to buy the stock no later than February 22nd. February 23rd would be known as the ex-dividend date in which anyone that buys at that point will not get the dividend payment for March 25th.
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10th Nov 2009 In Stocks
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Subjects: stock dividends,