When it comes to dividend stocks, investors should remain aware of the ex-dividend date, record date and payment date. The ex-dividend date determines which shareholders receive will receive dividend. The record date is the day on which a shareholder must be in the company’s books in order to receive the dividend. And finally, the payment date is the date on which the dividend is paid to shareholders.

In order to receive a company’s dividend, an investor must purchase the stock one or more days before its ex-dividend date. If the stock is purchased on or after the ex-dividend date, an investor will not receive the dividend.

The highest dividend-paying stock can vary, given the ever-changing nature of the stock market. Instead, investors often target the best high-dividend stocks, which are known for their dependable and attractive returns.

Dividends are typically paid on a quarterly basis, but companies can also pay dividends on a monthly or annual basis. Dividends paid out as a special dividend are one-time payments declared by the company.

Yes, if an investor sells out of a position on the ex-dividend date, the investor will still be the owner of the company’s shares as per the record in company books.
Investors should receive a dividend roughly two weeks after the ex-dividend date.