{"id":4479,"date":"2021-09-13T16:54:21","date_gmt":"2021-09-13T11:24:21","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=4479"},"modified":"2022-05-25T18:31:17","modified_gmt":"2022-05-25T13:01:17","slug":"dividend-dates","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/dividend-dates\/","title":{"rendered":"Dividend Dates \u2013 2022 Guide on Overview, Types and Upcoming Key Dividend Dates"},"content":{"rendered":"\n<p>A <a href=\"https:\/\/www.tickertape.in\/blog\/cash-dividend-vs-stock-dividend\/\">dividend<\/a> is the company&#8217;s reward to its <a href=\"https:\/\/www.tickertape.in\/blog\/shareholders\/\">shareholders<\/a> for entrusting the company with their money. A <a href=\"https:\/\/www.tickertape.in\/blog\/dividend-yield\/?utm_source=blog&amp;utm_medium=article\">dividend<\/a> is paid when the company decides not to reinvest the profits earned during the year and instead distribute it among the shareholders. However, there is no compulsion or a fixed time when companies pay dividends, which makes the timing of buying and holding the <a href=\"https:\/\/www.tickertape.in\/blog\/shares\/?utm_source=blog&amp;utm_medium=article\">stocks<\/a> a lot more critical. The last thing an investor would want is to miss out on a handsome dividend payout just because they were not aware of the dividend dates.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/dividend-dates\/#What-are-dividend-dates\" title=\"What are dividend dates?\">What are dividend dates?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/dividend-dates\/#Dividend-dates-you-should-know\" title=\"Dividend dates you should know\">Dividend dates you should know<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/dividend-dates\/#Dividend-declaration-date\" title=\"Dividend declaration date\">Dividend declaration date<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/dividend-dates\/#Ex-dividend-date\" title=\"Ex-dividend date\">Ex-dividend date<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/dividend-dates\/#Record-date\" title=\"Record date\">Record date<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/dividend-dates\/#Dividend-payment-date\" title=\"Dividend payment date\">Dividend payment date<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/dividend-dates\/#Example-to-understand-all-the-dividend-dates-at-once\" title=\"Example to understand all the dividend dates at once\">Example to understand all the dividend dates at once<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"what\"><span class=\"ez-toc-section\" id=\"What-are-dividend-dates\"><\/span>What are dividend dates?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Many listed companies regularly distribute dividends to their shareholders. Such stocks are commonly called <a href=\"https:\/\/www.tickertape.in\/blog\/dividend-investing\/\">dividend stocks<\/a>. Investors typically keep their peripheral vision on such dividend-paying stocks and would want to be in possession of such stocks when the dividend is announced.&nbsp;<\/p>\n\n\n\n<p>To be able to successfully collect dividends, one must understand the different dividend dates associated with the process of disbursement of dividends. The words ex-dividend, dividend record date, book closure start date may sound similar, but they carry a special significance during dividend payouts.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"know\"><span class=\"ez-toc-section\" id=\"Dividend-dates-you-should-know\"><\/span>Dividend dates you should know<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are four dividend dates that you as an investor should know:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Dividend-declaration-date\"><\/span>Dividend declaration date<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It&#8217;s the date when the company&#8217;s board of directors approves the proposal of payment of dividend. On this date, the board decides to pay its shareholders dividends. On the dividend declaration date, the rate of dividend and record date is also decided.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Ex-dividend-date\"><\/span>Ex-dividend date<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Even though the company declares the dividend, the <a href=\"https:\/\/www.tickertape.in\/blog\/ex-dividend-rate\/?utm_source=blog&amp;utm_medium=article\">ex-dividend<\/a> date is decided by the stock exchanges, that is, <a href=\"https:\/\/www.tickertape.in\/blog\/national-stock-exchange\/?utm_source=blog&amp;utm_medium=article\">NSE<\/a> and <a href=\"https:\/\/www.tickertape.in\/stocks\/bse-BSEL?&amp;utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">BSE<\/a>. It is also the first day the stock trades without a dividend. This data is crucial to determine how dividends would be distributed. The ex-dividend date is observed three days ahead of the record date. Therefore, all the purchases of shares of the dividend-declaring company on or after the ex-dividend date will not be considered for paying dividends until its record date.<\/p>\n\n\n\n<p>For example, GEC Ltd declared a dividend of 20%, having a record date of 10th July 2021 and an ex-dividend date of 7th July 2021.&nbsp;<\/p>\n\n\n\n<p>Let us then consider the case of three investors:&nbsp;<br>Ms A bought the shares of the company on 5th July 2021,&nbsp;<br>Mr B sold the shares on 8th July 2021, and<br>Mr C bought the shares on 8th July 2021.<\/p>\n\n\n\n<p>Here, Ms A, who bought the shares on 5th July 2021, which is ahead of the ex-dividend date, is eligible for receiving dividends in proportion to her holdings. She would not have been eligible for the dividend if she had purchased the shares on or after 7th July 2021.&nbsp;<\/p>\n\n\n\n<p>Mr B, who sold the shares on 8th July 2021, would still receive the dividend. Why? Because shareholders are allowed to sell their shares on or after the ex-dividend date and still be eligible to get the dividend since they did have the stock in their portfolio on the ex-dividend date.<\/p>\n\n\n\n<p>Mr C, who bought the shares on 8th July 2021, will miss out on the dividend even though he bought the shares before the record date as he bought the shares after the ex-dividend date.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Record-date\"><\/span>Record date<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If one\u2019s name is in the company&#8217;s shareholders list on the record date, then he is eligible for the dividend. The record date is often confused with the ex-dividend date. The record date is the dividend date and is declared by the company itself, not the <a href=\"https:\/\/www.tickertape.in\/blog\/stock-exchange\/?utm_source=blog&amp;utm_medium=article\">stock exchange<\/a> as with the ex-dividend date. It is crucial to understand that all the trades on stock exchanges are not settled immediately. This is the reason why companies declare a record date after the ex-dividend date.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Dividend-payment-date\"><\/span>Dividend payment date<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>On this date, the dividend amount is credited to the eligible shareholders\u2019 bank accounts or a cheque is issued where the <a href=\"https:\/\/www.tickertape.in\/blog\/how-to-transfer-shares-from-one-demat-account-to-another-complete-process\/?utm_source=blog&amp;utm_medium=article\">demat account<\/a> is not updated with the bank details.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"example\"><span class=\"ez-toc-section\" id=\"Example-to-understand-all-the-dividend-dates-at-once\"><\/span>Example to understand all the dividend dates at once<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Recently, <a href=\"https:\/\/www.tickertape.in\/stocks\/computer-age-management-services-CAMC?&amp;utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">Computer Age Management Services<\/a> (CAMS) declared a final dividend of Rs 11.84. Following are the dividend dates:<\/p>\n\n\n\n<p><strong>Declaration date:<\/strong> May 25th<br>The company passed the resolution in its board meeting to pay a final dividend of Rs 11.84.<\/p>\n\n\n\n<p><strong>Ex-dividend date:<\/strong> July 26th&nbsp;<br>Post this date, the company did not consider the buyers of shares of the company for the payment of dividends.<\/p>\n\n\n\n<p><strong>Record date:<\/strong> July 29th<br>The company paid the dividend to those having their names in the shareholder&#8217;s list on this date.<\/p>\n\n\n\n<p><strong>Payment date:<\/strong> Sep 20th<br>This is the date on which CAMS made payment to the eligible shareholders.<\/p>\n\n\n\n<p>Dividends are one of the sources of income from <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-equity\/\">equity<\/a> investments apart from capital gains. If you invested in dividend stocks, it is important to track company activities more in the context of dividend dates &#8211; the ex-dividend date and other important announcements.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Want to know about the upcoming dividend dates? Click here to understand more about dividend dates with help of examples and find some important dividend dates!<\/p>\n","protected":false},"author":45,"featured_media":4298,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"no","footnotes":""},"categories":[9,1749],"tags":[746],"acf":[],"modified_by":"Neera Bhardwaj","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/08\/Informative-1-1-3.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/4479"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/45"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=4479"}],"version-history":[{"count":4,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/4479\/revisions"}],"predecessor-version":[{"id":8831,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/4479\/revisions\/8831"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/4298"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=4479"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=4479"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=4479"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}