Dividend dates
Declarition Date, Ex Dividend date,, Record Date, , Payment Date.
https://www.investopedia.com/university/introduction-to-dividends/dividend-dates.asp
Declaration Date
The declaration date is the date the dividend is announced by the Board of Directors. The declaration statement includes the size of the dividend, the date of record and the payment date (see below). Once a dividend is declared, the company has a legal responsibility to pay it.
Record Date (or Date of Record)
When a company announces a dividend, it sets a record date – the date you must be on the company’s books to receive the declared dividend. On the record date, the company determines its shareholders, or “holders of record,” and establishes who is sent financial reports, proxy statements and other information.
Ex-Dividend Date (or Ex-Date)
After the company sets the record date, the ex-dividend date is set in accordance with stock exchange rules. If you buy the stock before the ex-dividend date, you’ll receive the dividend – but if you buy on or after the ex-date, you won’t (in this case, the seller of the stock is entitled to the dividend). As an example, assume that stock ABC recently announced a cash dividend with an ex-dividend date of December 7. If you buy 100 shares of ABC on that date (or after), you won’t receive the dividend, but if you buy the shares on December 5 – before the ex-dividend date – you’ll be entitled to the next dividend. (For more, read Why Don’t Investors Buy Stock Just Before the Dividend Date and Sell Right Afterwards?)
The ex-dividend date is usually set one business day before the record date. A stock’s price may increase by the dollar amount of the dividend as the ex-date approaches. On the ex-dividend date, the exchange may reduce the price per share by the dollar amount of the dividend. [L3]
Payment Date (Payable Date)
The payment date is the scheduled date the company pays the declared dividend. Only shareholders who own the stock before the ex-dividend date are entitled to the dividend.
DRIP’s vs Cash
DRIPS – useful for big rollers – Mutual funds/ pension funds / ETF’s.
Downside of DRIPS – owning partial stocks.
Investment $1,000
$100 x 10 stocks x 3% = $3.00 annually/per x 10 = $30.00 = 3 years before you own 11 stocks.
$ 10 x lot of 100 x 3% = $30/12 = $2.50 Therefore 1 new stock every 4 months. years end 103 stocks.
$10,000 in 5 different dividend bearing stocks – Average of 4% Dividiend $10,000 x 4% / 12 = $33.33 / monthly $ 100 / quarterly
Here’s an example that shows the timeline for a dividend paid in Oct. 2017:
Declaration Date Ex-Dividend Date
Record Date Payment Date
July 21, 2017 Sept. 14, 2017
Sept. 15, 2017 Oct. 2, 2017
Company announces pending dividend.
The date before which you must own Company to be entitled to the dividend.
The date by which you must be on the books as a shareholder to receive the dividend.
The date Company pays the dividend to shareholders.
Dividend dates
Sample Announcements
Invesque Announces April 2018 Dividend
April 17, 2018 By NewsWire Tagged With: TSX:IVQ.U
TORONTO, April 17, 2018 /CNW/ – Invesque (TSX:IVQ.U) announced today a cash dividend in the amount of US$.06139 per common share for the period from April 1, 2018 to April 30, 2018. The dividend will be payable on May 15, 2018 to shareholders of record as of April 30, 2018.
CALGARY, May 3, 2018 /CNW/ – Mosaic Capital Corporation (“Mosaic“) (TSX-V Symbols: M and M.DB) is pleased to announce that its board of directors has approved a monthly dividend on Mosaic’s common shares of $0.035 per share (or $0.42 per share on an annualized basis). This dividend will be paid May 31, 2018 to holders of record on May 15, 2018. The objective of paying a dividend is to allow common shareholders of Mosaic to participate in our free cash flow while ensuring Mosaic retains sufficient capital to preserve its strong balance sheet, continue its acquisition strategy and fund organic growth.
Mosaic’s dividend on its common shares is designated to be an eligible dividend for purposes of the Income Tax Act (Canada) and any similar provincial or territorial legislation. An enhanced dividend tax credit applies to eligible dividends paid to Canadian residents.
