If you hold shares until a company-defined ex-date, you are entitled to dividends.
Payout date is usually set about one month after the record date. Dividends are automatically credited to the client’s account on the payout date.
If taxes apply, they are debited with a separate transaction. You can find the tax details in the Comment field.
How does a company pay?
- Company declares dividends from a stock
- Company sets the record date and sends a press release to inform the shareholders
- Record day: all shareholders kept on record to that date are entitled to receive dividend payment
- Next day: called the ex-date because from that date the stock trades ex-dividend (meaning everyone who buys stocks after ex-date won’t get the next payment)
- Payable date: normally, one month after the record date; that’s when clients receive dividends to their accounts.
In some cases, clients might receive the funds with a few days’ delay due to document processing.