What is the date of payment’
The payment date is the date on which the declared dividend on shares is scheduled to be paid.
Through the date of payment’
Only those shareholders who bought shares before the ex-dividend date to receive dividends on the date of payment (day of payment).
As the date of the payment fits into the dividend
Process and cycle of dividend payments, as a rule, you should install the template. The company’s Board of Directors announced the Declaration of the parameters of the next dividend payment will be published. This is known as the date of the announcement and the date of dividend Declaration.
If the application is accepted, the company will also determine the date, also known as date of record, which specifies the period for shareholders of record on the books, in order to qualify for dividends. Usually this coincides with who the company also produces material such as financial reports and proxy statements.
This step generally involves a company that sets the ex-dividend date, which is determined in accordance with the rules of the relevant exchange it is listed on. The new shareholders, the first sale of shares on the ex-dividend date or after cannot that following the payment of dividends will be published. The ex-dividend date in many cases one business day prior to the date of recording.
Date of dividend payment can be up to one month after the ex-dividend date passes. When the day of payment arrives, the company will issue the compensation is usually the broker who maintains the shareholder. Then the dividend will be transferred to the relevant shareholder.
There may be changes in the stock price on the date of payment of dividends, which investors can look as an indicator of how the market value of the securities. Other investors who do not qualify for dividends can buy and sell stocks as you approach the payment. This can lead to the share price remaining elevated, despite the issuance of dividends.
There is potential for stock prices drop, because the company’s value has decreased, based on the full dividend, as the payment of profits and reserves. There are some expectations of the cost of shares decrease in equal amounts from dividends to show for it decreasing in value. This may be because other factors can come into play that affect stock prices to a greater extent than the payment of dividends. If a company sees its stock price will remain the same or increase on or after the due date, it may indicate the presence of demand in the stock market.