Value Microcaps Motherboard

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Declaration date is the day that the board of directors announces the dividend. This must occur 10 days before the dividend is recorded to comply with the federal Securities and Exchange Act of 1934. So December 21 will be the final day companies can declare a special dividend ahead of the potential of the looming tax hikes.

The Ex-dividend date is the date the security trades without the dividend. This falls on the second business day before the distribution is recorded in the company's business records. The stock price is lowered by the stock exchange to reflect the amount of the dividend as the company takes the dividend amount off its books, and the company's value decreases. Obviously a key date for traders as the price will fluctuate. Investors who purchase the stock on or after this date do not receive the dividend. An investor must purchase the stock the day ahead of the Ex-div date as settlements of a stock is a T+3 process. Meaning it takes three days from the transaction date for a company to officially put a stock holder on the books. An existing shareholder must retain the stock until this day passes to receive the dividend.

The date of record is the date on which the company reviews its shareholder records to ensure it distributes payouts to the right investors.

The date of payment marks the date the company distributes the dividend to holders on record. This usually occurs a week after the date of record.