Shareholders are often confused about when to buy a stock in order to be eligible for a dividend. What matters is the balance in the securities account on the record date. The stock must therefore be purchased no later than two trading days prior to that date (cum date).
Annual General Meeting (AGM)
Decisions are made regarding the distribution of a dividend and its amount.
Cum date
The last day on which shares can be purchased with entitlement to a dividend.
Ex date
The first day on which shares are traded without the dividend (after the ex-dividend date).
Record date
The date that determines the portfolio balance for eligibility to receive the dividend payment.
Payment date
Dividends are paid out to shareholders.
