Dividend Terminology

I was originally confused by the three dates that we commonly see when it comes to dividends. Since the tax law changed (pro-dividend) the focus on dividends has become a hotter topic. As such, here is something I found on a forum board which helped clear things up in a jiffy:

EX DATE- anyone who has bought the stock up until the day prior to this date (whether the trade settles or not) is entitled to the dividend attached to the share. If a stock has an ex div date of 14th April, if you buy on the 14th, you aren't entitled to the div.

RECORD DATE- this is basically the date where the company registrars take a snapshot of their books and say "ok, whoever owns the stock according to what we see settled gets the dividend". As Don pointed out, this date is staggered after the Ex Date so that trades have time to settle and simplify the distribution of money and save us all passing the dividend on to the rightful owners in the case of unsettled trades. If your trade has not settled, for whatever reason, dont panic because you WILL still receive it as it is your legal right.

PAY DATE- Exactly what it claims to be i.e. the day the company distributes dividends to share owners.

That's all.