Dividendy
Record Date, Ex-Dividend Day, and Payment Date: Three Key Dividend Dates
Key takeaways
- Ex-dividend day is the most important date: anyone who holds the share at the end of the day before it is entitled to the dividend.
- Record date is a technical date on which the company records eligible owners; usually 1–2 business days after ex-div.
- Payment date is the date of actual dividend payment to the broker account.
- On ex-dividend day the share price typically falls by approximately the dividend per share.
- Buying a share "for the dividend" shortly before ex-div and selling it afterwards is generally not a profitable strategy.
The dividend calendar has three key dates — declaration date, ex-dividend day, and payment date — and confusing any of them can mean you do not receive the dividend.
Declaration Date: When the Company Announces the Dividend
The company's board of directors communicates at a press conference or in a regulatory announcement: the dividend amount per share, the ex-dividend date, and the payment date. From this moment the dividend is public information, but no one receives it yet — that comes later.
Ex-Dividend Day: The Key Date for Entitlement
This is the date that decides entitlement. The rule is precise: anyone who holds the share at the close of trading on the day before ex-dividend day is entitled to the dividend. Anyone who buys the share on ex-dividend day or at any time afterwards does not receive the dividend for this round — even if they then hold it for years.
Record Date: The Technical Date for the Broker System
Record date is the date on which the company counts up the list of eligible shareholders. It usually falls one or two business days after ex-dividend day — this is the result of the settlement period (T+1 or T+2 depending on the market). For investors record date is less important — what matters is meeting the ex-div condition.
Payment Date: When the Money Arrives
Payment date is the date of actual payment. The money arrives in your broker account. The period between ex-dividend day and payment date is typically a few weeks. For ETFs the broker may slow down the crediting by a day or two due to internal processing. An overview of how dividend investing works is in the dividend aristocrats profile.
Summary: What to Do When
- Want the dividend? Buy the share no later than one business day before ex-dividend day.
- Not planning to take the dividend? Buying on or after ex-dividend day saves you the dividend tax liability — but you buy at a price lower by the dividend amount.
- Monitor dividend calendars at your broker or on portals such as Dividend.com or Seeking Alpha.
This article is not tax advice. More on dividend taxation in the Czech Republic is in the guide ETF taxes in the Czech Republic.
FAQ
What is ex-dividend day and why does it matter?
Ex-dividend day is the date at whose previous close you must own the share to receive the dividend. Anyone who buys on ex-div day or after does not receive the dividend for this round — even if they then hold the share for years.
Why does the share price fall on ex-dividend day?
The dividend moves from the company's value into shareholders' pockets. The market reflects this loss of assets in the share price — the price on ex-dividend day typically falls by approximately the dividend per share. The total value of the investor's position does not change.
What is the difference between ex-dividend day and record date?
Ex-dividend day determines entitlement to the dividend. Record date (1–2 days later) is the technical date on which the company tallies the list of eligible shareholders for payment. For investors, ex-dividend day is the key date.
How long does it take for a dividend to arrive in my account?
Payment date is usually a few weeks after ex-dividend day. For foreign shares and ETFs the broker may delay crediting by a day or two due to internal processing and currency conversion.