Dividend Dates in UK are important to remember as they helps you in in scheduling your dividend money on a regular basis. Whenever you buy a new dividend paying stock in UK, always check the important credentials for that stock like dividend yield, yield%, payout ratio, EPS, dividend history and market capitalization, average volume and total market share coverage etc. These Factors will ultimately guide you towards making good return from your shares in UK.
It has often seen between the investors community that they follow some of the myths which pull them backwards and prevent from getting good returns even in good market situations even. Some People think that to earn dividends you just have to own the stocks for 30 for 45 days otherwise you will not be paid dividend on that stock in UK. Unfortunately such things are not true as even you can make money by just holding stock for a week. There are many Dividend Dates in UK for a particular stock traded in market but some key dates are record date, ex-dividend date and payment date.
Record Date is announced by a company to nominate all the shareholders who owns their stocks for dividend to be given and on the record date anyone who is registered owner of their stock gets the money. Once record date is announced, there comes ex-dividend date which normally company announce but in case if it is not announced it comes two days before the record date. Reason behind this is it take 3 business days to transfer the stock ownership. So if you want to buy a stock you should buy stock just before the ex-dividend date, not even on its ex div. date. If you will buy a share on its ex date you will not be able to be a registered owner till record date and hence you will not be getting anything.
Most often you have heard this term in financial word that this stocks has become ex-dividend on that date so I decided not to buy it! Now wondering what is this being ex-dividend? When a stock reaches to its ex-dividend date it becomes ex-dividend stock simply. In Simple words Company labels a stock as Ex-Dividend Stock once it passes its ex date.
Similar Situation Applies when you already own a stock, it becomes mandatory for you to keep that stock ownership until it becomes ex-dividend. Once it becomes ex-Dividend you can immediately sell it to anyone. In this case you will be getting paid as new ownership wont transfer till record date.