In short
A dividend is a distribution of profits by a corporation to its shareholders. They are often paid quarterly and distributed in cash.
Understanding Dividends
When companies achieve a surplus or profit they are able to pay a dividend to their shareholders. However not all companies pay a dividend. Some companies want to reinvest their profits into growth. Younger companies often don't pay a dividend.
Apple is paying quarterly dividend of 0.23$. If you own 100 Apple shares before the ex-dividend date, you will receive a payout of 2.3$ in dividends on the payment date.
Requirements
To receive a dividend you need to own shares of a dividend paying company before the ex-dividend date.
Frequencies
Dividends are paid in varying frequencies. Most relevant dividend frequencies are monthly, quarterly, semi-annually and annually.
Dates
There are some important dividend dates.
- Ex-dividend date
The date at which eligibility of receiving this date expires. If you buy shares on or after this date, you will not receive this dividend. - Payment date
The date at which the dividend will be payed out to the eligible shareholders. - Announcement date
The date at which a company announces its dividend.
This information is educational only and not a recommendation to buy, hold, or sell an investment or financial product, or take any action. This information is neither individualized nor a research report, and must not serve as the basis for any investment decision. All investments involve risk, including the possible loss of capital. Information is from sources deemed reliable on the date of publication, but Stock Events does not guarantee its accuracy.
