What is a Dividend? : Introduction and Methods

2 min. readlast update: 11.07.2023

A Dividend is the income distributed by a company to its shareholders in the form of cash or additional shares. The timing of dividend payments is typically predetermined and subject to the company's policies. The amount of dividends paid can vary and depends on the company's financial performance and accumulated profits. Dividend distribution policies can vary between different companies.

A glossary of terms related to dividends: 

  1. Declaration date : The day when a company publicly announces its financial performance results, including the amount of dividends that shareholders will receive. It's also the day when investors should be aware of important information if they plan to buy or sell the company's shares.
  2. Ex-Dividend date: For CFDs, it's the day when shareholders will receive dividend payments from the broker. For the underlying asset, it's the day when shareholders are informed of the date they will be counted for the right to receive dividend payments, which includes both existing and new shareholders in the market. And shareholders will receive a dividend on Payment Date. 
  3. Record date: The day of announcement of the list of shareholders who will receive dividend payments.
  4. Payment date: The day when the company pays dividend to shareholders. And underlying asset shareholders will receive dividend payment on Payment Date. 

Timeline about Dividend : 

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Remark :

  • A position opened before the Ex-date and held until the market opens on the Ex-Date will receive dividend. 
  • The underlying asset will receive a dividend on the payment date. 
  • A sell position will not receive the dividend because taxes need to be paid to the broker. 

You can access the table Woxa Stocks Calendar or Trading Hours and Market Events to check the dates and times for dividend payments.  

 

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