What are some important dates to keep in mind when investing in dividend-paying stocks or ETFs?
When it comes to getting the benefits of dividends, there are a few dates to keep in mind.
Dividends are paid on the payment date. This is set by the board of directors and, ultimately, the shareholders. This is the date the dividend checks or electronic payments are sent to eligible investors.
Other important dates to remember:
- Declaration date — This is when the next dividend payment is announced by the company.
- Record date — This is when the company looks at its records to see which shareholders are eligible for the dividend.
- Ex-dividend date — After this date, you can no longer purchase the stock and receive the upcoming dividend. The ex-dividend date is typically the second business day before the record date. If you want to receive a dividend payment for a particular stock, you need to purchase it at least three business days before the record date. This is because it takes three business days for a stock purchase to be settled and officially put on the company’s books.
Good to know
Dividend-paying securities purchased too close to the payment date are not considered “qualified dividends,” and are taxed at a higher rate.
Related questions View all
Q. Turning Round-Ups On and Off
You can easily manage your Stock-Back® Card round ups on the Stash app or website.1 Follow these steps to turn round-ups on/off. On the app: Login to the Stash app. Tap Bank at the bottom of the screen. …
Q. All About Instant Transfers
What are instant transfers? Transferring money within Stash generally is effective immediately but could take up to a few minutes; however, transferring to an external bank account can take 1-3 business days. Instant transfers allow you to transfer money to an external bank from your Stash banking account instantly for a 1% fee.…
Q. Earning Stock-Back® Rewards with Stash
Want to make your money work harder for you? The Stash Stock-Back® Debit Mastercard® allows you to invest while you spend.1 Read on to find out the details of this benefit, offered exclusively by Stash. How does Stock-Back® work? To earn Stock-Back® Rewards,…
Didn’t find your question?
Tell us what you’re looking for, and we’ll search for resources that could help.Ask your question
Fiduciary 101: Why it’s Our Job to be Your Advocate
It’s a big word that means a lot when it comes to handling your money. It defines a relationship built on trust and duty.
Debt and Equity: What Every Smart Investor Needs to Know
You can invest in debt & in equity, but do you really know what that means? We break down the jargon.