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How Do Dividends Work?
By qwcdirect | May 4, 2010
Dividends are normally distributed on a specified time for instance every quarter of a year or every month but there are some special dividends that can be distributed any time. Most people wonder how they can own shares so that they can earn dividends. To earn dividends you must own the stock three days before the date for the companies is due. There re some days that you need to understand concerning the stock market. Among them is the declaration date which is the date when the board of directors of the company in question announces the payment of dividends formally. They will also announce the total amount of dividends, the payout day as well as the date of record.
Other dates that you need to be conversant about are the ex-dividends date, record date, and payment date. The payment date is when the cheques are sent to every shareholder or in some cases they are distributed to the brokerage account.
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