About stock dividends and interest

[harshendrasingh]

If I buy or sell shares on Ex-Date of Dividend announcement, Do I receive the dividend? What is the record date?

Here’s the process flow of how Dividends are paid out: [Dividend Payment process] Dividend Payment process Dividend Declaration Date: This is the day the Board of Directors authorize and announce the dividends to its shareholders. Once the dividend is authorized it becomes the company’s legal liability to pay such dividends. Ex-Date or Ex-Dividend Date: As the name suggests, Ex-Dividend date is the date on which the stock trades without the dividend included in it. Normally the price of the …

How and when are dividends paid out?

Dividends is a way to distribute the profits of the company to its share holders. Suppose a company makes Rs.100 as profit, they can decide to distribute 50 out of 100  to its shareholders.  Dividends can be paid out anytime during the financial year or it can be paid out at the end of the financial year. If its paid during the year its called interim dividend, if its paid at the end of FY its called Final Div.  You maybe interested to know that the dividends at the hands of the share holders …