How will i receive my dividend

Dividends are a great way to get return from the stock market. Many investors prefer investing only in dividend yielding stocks and rely only on dividend as a return from the market. However, selecting dividend yielding stocks I not easy and requires research. An investment advisor can help you in researching the fundamentals of a company and analyzing its performance to recommend you about upcoming dividends.

To receive dividends from a company, you should be an eligible share holder of the company. There are two dates which are very important for investors who want to get dividends:

1) Record Date or Date of Record – This is the date on which you should be a shareholder of the company’s stocks to be eligible to get dividend.

2) Ex-Dividend Date – If you purchase the stock on or after the ex-dividend date, you will not be eligible for getting dividends in such a case, the seller of the stocks will be eligible for dividend. The ex-dividend date is usually one day prior to the record date.

It is not necessary for the company to pay dividend in the form of cash only. It can offer additional stocks or assets as well in the form of dividend. The dividend obtaining procedure in such cases will be a bit different.
In special cases when the record day is on a Monday or any day succeeding a holiday, the last working day will be considered as the ex-dividend date. For example, if the record date for a company is Monday, the ex-dividend date for it will be the last Friday. It means that those investors who have bought the stock on Friday will not be eligible for obtaining dividend. The investors who have bought the stocks till Thursday will be eligible for getting the dividend payout.