There is a lot of interest in dividend paying stocks right now. It's good to be aware of dividend payment dates so that you don't buy or sell on the wrong day and miss out! There are four dates that are discussed when companies pay dividends. They are:

Declaration Date-This is the date the company board announces that it will be paying a dividend. Once a dividend is declared, the company has a legal obligation to pay it. A board decision needs to be made each time a dividend will be paid. Just because a company has paid dividends in the past, does not mean they have an obligation to pay them each quarter. The board will announce the dividend amount, the record date and the payable date.

Record Date- The date you need to be on record as owning the stock to receive the dividend.

Ex-Dividend Date-You must have purchased the stock prior to this date so that the trade will have settled and you will be an official owner as of the Record date. The ex-dividend date is 2 business days prior to the record date. If you purchase a stock on or after the ex-dividend date, you will not receive the dividend. If you own a stock and sell it on or after the ex-dividend date, you will receive the dividend.

Payable Date-The date you actually receive the dividend.

I find www.dividendinvestor.com a useful source of information about upcoming and historical dividend payments.

Laurie Frederiksen
www.bivio.com