The one thing to remember
The ex-dividend date decides eligibility; the payment date is when the dividend is paid.
Four dates, one payment
Declaration date: the company announces how much it plans to pay and the important dates. A declared payout is different from an estimate of a future payout.
Ex-dividend date: the first day shares normally trade without the right to the next declared dividend. Buy on or after this date and you generally do not get that payment.
Record date: the company checks its shareholder records to establish who qualifies. Settlement rules affect those records, so use the published ex-dividend date rather than guessing from the record date.
Payment date: the company pays the dividend. Your broker may credit it later, especially for overseas shares or currency conversions.
A dividend is not free extra money
A share price typically adjusts to reflect the dividend on the ex-dividend date, although market movements also affect it. Buying just to collect a dividend does not guarantee a profit.
Special dividends and some markets have different entitlement rules. Always check the company announcement and your broker if a payment is unusually large or the dates look surprising.
What to keep in your records
Record the ticker, eligible shares, dividend per share in its original currency, ex-dividend date, payment date and any tax withheld. Keep the broker statement as your source for the amount actually received.
- Separate confirmed dates from estimates.
- Check whether the quoted rate is in pounds or pence.
- Compare the gross payment with the net amount received.
- Do not assume every stock pays monthly.
A quick check
You buy on the normal ex-dividend date. Do you get the next declared payment?
Explore the numbers
Stock links are examples for learning, not investment recommendations. Calculator results depend on their assumptions and selected tax year.
Sources & further reading
Education only—not personal investment or tax advice. Dividends and share prices are uncertain. Tax treatment depends on individual circumstances and may change.
Put your learning into practice
Track the shares you already own and keep your dividend records in one place. No broker connection required.