1. Declaration Date
a. It is the date on which a firm’s directors issued a statement declaring the dividends.
b. At the time of the declaration, the companies also announce the holder-of-record date and the payment date.
2. Ex-Dividend Date
a. It is also called the ex-date.
b. This is the date on which the current dividend no longer accompanies the stock. This is the date on which the stock traded first without the dividend.
c. Those people who are the owner of the share on or before this date are entitled to the dividends. In case someone buys the shares after this date; the previous owner will be entitled to the dividend.
d. This date is decided by the exchange on which the share is trading.
3. Holder-of-Record Date
a. If the company lists stockholders as owners on this date, then stockholders are entitled to receive dividends on this date.
b. The stock transfer book is usually closed after this date.
c. This date is typically two days after the ex-date.
d. This date is determined by the company.
4. Payment Date
a. This is the date on which the firm actually mails the dividend checks, or makes the transfer of the payments.
b. This date is declared on the date of declaration of dividend.
c. This could be any day, including weekdays and weekends.