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Investment Glossary

Search common financial, dividend, disclosure, market, and corporate-action terms.

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Dividend Terms

5 terms
Dividend Terms

Declaration Date

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The date on which a company’s board formally announces a dividend.

Why it matters

The announcement normally includes the dividend amount and important eligibility and payment dates.

Dividend Terms

Dividend Yield

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The annual dividend per share divided by the share price, expressed as a percentage.

Why it matters

A high yield may be attractive, but it can also result from a falling share price or a dividend that may not be sustainable.

Dividend Terms

Ex-dividend Date

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The date from which a share trades without the right to receive the declared dividend.

Why it matters

An investor generally needs to own the shares before the ex-dividend date to qualify, subject to market settlement rules.

Dividend Terms

Payment Date

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The date on which an approved dividend is scheduled to be paid to eligible shareholders.

Why it matters

It tells qualified shareholders when the cash or shares are expected to be distributed.

Dividend Terms

Record Date

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The date on which the company checks its shareholder records to determine who is entitled to a dividend or other corporate action.

Why it matters

It is part of determining eligibility, but investors should also understand the ex-dividend date.