Dividend Dates Explained: Ex-Dividend Date, Record Date and Payment Date

To receive a dividend, you must buy the stock before its ex-dividend date. If you buy on the ex-dividend date or later, the dividend goes to the seller. The cash then arrives on the payment date.

Every dividend has four dates. Only one of them, the ex-dividend date, decides whether you are paid. This guide explains each date, shows how to find the last day to buy, and covers how often dividends are paid. The rules described are those of US markets, checked against SEC and FINRA sources in October 2026.

The four dates at a glance

The declaration date

The board of directors announces the dividend. The announcement gives the amount per share, the record date and the payment date. Nothing is required of you on this day. It is simply the first moment the other dates are known.

The ex-dividend date

This is the date that decides who is paid. The SEC puts it plainly on Investor.gov: "If you purchase a stock on its ex-dividend date or after, you will not receive the next dividend payment. Instead, the seller gets the dividend. If you purchase before the ex-dividend date, you get the dividend."

The company does not choose this date. It follows from the record date under exchange rules. FINRA Rule 11140 sets the ex-dividend date as the record date when the record date is a business day. When the record date falls on a weekend or a holiday, the ex-dividend date is the business day before it.

The record date

On the record date the company looks at its list of shareholders. Whoever is on the list is paid.

For an investor, the record date matters less than its name suggests. A purchase takes one business day to settle, so a trade made on the record date itself reaches the company's books a day too late. That is why the ex-dividend date is the one to watch.

The payment date

This is the date the company has scheduled for the payment. Your broker usually credits your account the same day, sometimes a day or two later. The gap after the record date varies by company. In the SEC's own example the payment comes one day after the record date. Many companies pay two to four weeks later. The declaration always states the exact date.

If you reinvest your dividends automatically, your broker buys the new shares on or shortly after the payment date.

Why the ex-dividend date and the record date are now the same day

Until May 2024, US stock trades took two business days to settle, and the ex-dividend date fell one business day before the record date. Many older guides still describe it that way.

On May 28, 2024, the settlement cycle for most US securities was shortened from two business days (T+2) to one (T+1). A trade made on Monday now settles on Tuesday. As a result, the ex-dividend date and the record date normally fall on the same day.

Other countries have their own settlement cycles and rules. For a stock listed outside the US, read the ex-dividend date in the company's announcement instead of working it out from the record date.

The last day to buy: a worked example

A company declares a dividend of $0.50 per share with these dates:

A purchase on Friday, June 12 settles on Monday, June 15, in time for the record date. A purchase on Monday, June 15 settles on Tuesday, one day too late, and the seller keeps the dividend.

Three rules cover almost every case:

• Count business days only. If the record date is a Monday, the last day to buy is the Friday before. If that Friday is a market holiday, it is the Thursday.
• A weekend record date moves the ex-dividend date earlier. In the SEC's example, a record date of Sunday, March 15, 2026 gives an ex-dividend date of Friday, March 13. The last day to buy is then Thursday, March 12.
• You can sell on the ex-dividend date and still be paid. Once you have held the shares into the ex-dividend date, the dividend is yours, even if you sell that morning.

What happens to the share price on the ex-dividend date

The share price usually opens lower on the ex-dividend date, by about the amount of the dividend. A buyer that morning no longer receives the payment, so the stock is worth that much less. The SEC notes that "with a significant dividend, the price of a stock may fall by that amount on the ex-dividend date."

This is why buying just before the ex-dividend date and selling just after is not free money. You collect $0.50 and own a share worth about $0.50 less. Two further costs make it worse:

• Tax. The dividend is taxable, even though your total wealth did not change.
• A higher tax rate. A dividend only gets the lower qualified rate if you hold the stock for at least 61 days around the ex-dividend date. Sold sooner, it is taxed at your full income rate. See qualified vs ordinary dividends.

Special cases

Very large dividends. When a dividend is worth 25% or more of the share price, the order is reversed. Under FINRA Rule 11140 the ex-dividend date is the first business day after the payment date. If you sell between the record date and that later ex-dividend date, the dividend goes to the buyer.

Dividends paid in shares. For a stock dividend or a spin-off, the SEC explains that the ex-dividend date is also set on the first business day after the payment. A seller before that date must hand over the new shares to the buyer.

Dividends declared in December and paid in January. For tax, a dividend normally belongs to the year it is paid. IRS Publication 550 makes one exception: a dividend that a mutual fund or a REIT declares in October, November or December, to shareholders of record in one of those months, and pays in January counts for the year it was declared.

How often are dividends paid?

It depends on the company and, to a large extent, on the country.

A company is free to change its schedule, and no schedule is guaranteed. Each dividend exists only once the board declares it.

Frequency does not change how much you earn. A stock that pays $4 a year pays $4 whether it comes in one payment or twelve. What changes is the timing of your cash. A portfolio of quarterly payers with different schedules can still produce income every month, because companies do not all pay in the same months.

What to track

For planning your income, the payment date is the one that matters: it tells you when cash arrives. The ex-dividend date matters on the day you buy or sell.

OnlyDividends is built around the payment date. It shows a 12-month calendar of when each dividend is expected to reach your account, and how much, after the tax rate you set. It does not show ex-dividend dates. For the other ways to keep track, see how to track your dividend income.

Frequently asked questions

What is the difference between the ex-dividend date and the record date?

The record date is the day the company checks who its shareholders are. The ex-dividend date is the first day the stock trades without the dividend. In the US they are normally the same day since May 2024, and you must buy before that day to be paid.

Do I get the dividend if I buy on the ex-dividend date?

No. If you buy on the ex-dividend date or later, the seller receives the dividend. You must buy at least one business day before.

Do I get the dividend if I buy on the record date?

Normally not. The record date is usually also the ex-dividend date, and a purchase made that day settles one business day later, after the list of shareholders has been drawn up.

Can I sell on the ex-dividend date and still get the dividend?

Yes. If you owned the shares before the ex-dividend date, you are entitled to the dividend even if you sell on that date. You do not need to hold until the payment date.

How long after the ex-dividend date is the dividend paid?

It varies by company, from one day to several weeks. Two to four weeks is common. The exact payment date is given when the dividend is declared.

Why does the stock price drop on the ex-dividend date?

Because a buyer from that day on does not receive the dividend. The share is worth less by about the amount of the payment, and the opening price usually reflects it.

How often do dividends pay?

Most US companies pay four times a year. Many European companies pay once or twice a year, and some REITs and funds pay every month.

How long do I have to hold a stock to get the dividend?

Owning it at the start of the ex-dividend date is enough to receive the payment. To have it taxed at the lower qualified rate, you need to hold it for at least 61 days around that date.

Disclaimer

This article is general information about how dividend dates work on US markets, not investment or tax advice. Dates and amounts in the examples are illustrations. Check the company's own announcement for the dates of a specific dividend.