Legal Definitions - dividend date

Definition: The dividend date is the date on which a company pays out dividends to its shareholders who are recorded as owners of stock shares.

For example, if a company declares a dividend of $1 per share and a shareholder owns 100 shares, they will receive a dividend payment of $100 on the dividend date.

The dividend date is different from the ex-dividend date, which is the date on or after which a stock trades without the dividend. If an investor buys a stock on or after the ex-dividend date, they will not receive the upcoming dividend payment.

Overall, the dividend date is an important date for investors who rely on dividend income from their investments.