So how do you avail of a dividend?
Whenever a dividend is announced, there’s always three dates mentioned in it.
Look for them to aid you in your decision of buying stocks and availing of a desired dividend.
RECORD DATE – date where stockholders to be entitled of dividends are identified and recorded. For the purpose of availing the dividend, you can ignore this one.
EX-DIV DATE – three working days before the record date. EX means bye-bye dividends. This starts the three-day process period, during which if you buy you’re NOT entitled to the dividend. The three days period is needed because of the T+3 rule – three days is needed after the transaction day before the stock you bought be placed under your account.
While you can already see it in your portfolio after the order is executed, the records that will be used in identifying the entitled stockholders will only be updated after these three days.
PAYABLE DATE – date where dividends will be finally paid to stockholders. Yahoo!
Depending on your broker, you may see this payment credited to your portfolio on or after the payment date.
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