When a company decides to pay a dividend to common shareholders, an amount is declared along with a payable date.
Important Dividend Dates
This is the date dividends are declared. Shareholders are notified via press release. At the time of declaration, date of record is set.
Date of Record
All shareholders on record on that date are entitled to the dividend payment.
The day following the record date is called the ex-dividend date. This means that if you buy or your buy order settles after this date you are not entitled to receive the most recent dividend payment.
The date when the dividend is paid out to shareholders. The company deposits the funds for disbursement to shareholders with the Depository Trust Company (DTC).
On Chaka, dividends are automatically credited to your global wallet. You will get an email notification when you receive dividends.
Note: You are subject to a dividend tax rate of 30% on dividends paid out by U.S. companies.