Every dividend announcement involves four key dates. Understanding them tells you exactly when to buy to receive a dividend — and when you've missed the window.
Declaration Date
The date the company's board announces the dividend. The announcement includes the dividend amount, record date, and payment date.
Ex-Dividend Date (Ex-Date)
The cutoff date for dividend eligibility. You must own the stock before this date to receive the dividend. Buyers on or after the ex-date do not receive the upcoming payment. Share prices often fall by approximately the dividend amount on the ex-date.
Record Date
The date the company checks its shareholder registry to determine who is entitled to the dividend. Due to T+1 or T+2 settlement, the ex-date is typically one or two business days before the record date.
Payment Date
The date dividends are deposited into eligible shareholders' accounts. This is usually 1–4 weeks after the record date.
Dividend Yield
Annual Dividends Per Share ÷ Current Share Price × 100
The percentage return from dividends relative to the current stock price. Available in multiple periods (3M, 6M, 12M, YTD, Prior Year) on Yield Tiny DiV.
YTD (Year-to-Date)
Cumulative figure from January 1st to the current date. YTD dividend yield annualizes dividends paid so far this year to project the full-year rate.
Payout Ratio
Dividends Per Share ÷ Earnings Per Share × 100
The percentage of earnings paid as dividends. A ratio above 80–90% may indicate the dividend is unsustainable. A very low ratio suggests room for future dividend growth.
Total Return
The combined return from price appreciation and dividends. A stock with a 6% yield but a 10% price decline delivers a negative total return. Always consider total return, not yield alone.
DRIP (Dividend Reinvestment Plan)
Automatically reinvesting dividends to purchase additional shares instead of taking them as cash. Accelerates compounding over time.
Dividend Aristocrats
S&P 500 companies that have increased their dividend every year for at least 25 consecutive years. Examples include Coca-Cola, Johnson & Johnson, and Procter & Gamble.
Covered Call
An options strategy where a stockholder sells call options on shares they own to collect premium income. Used by high-yield ETFs like JEPI and QYLD to boost distributions. Limits upside in strong bull markets.
Withholding Tax
Tax deducted at source when dividends are paid. Korean domestic stocks: 15.4%. US stocks for Korean residents: 15% (Korea-US tax treaty rate).