Record Date

The record date is the date on which a company officially records which shareholders are eligible to receive the next dividend payment. Only shareholders on the record date receive the dividend.

Formula

Record Date = Announcement Date + (typically 2-3 weeks)

The ex-dividend date is set 2 business days before the record date to accommodate the T+2 settlement period.

Example

Procter & Gamble (PG) announces a quarterly dividend with a record date of October 15. The ex-dividend date is set 2 business days earlier, at October 13. The company's transfer agent tallies all registered shareholders as of October 15; those shareholders receive the dividend payment on or around the payment date.

How to Interpret It

• Shareholder of record: Only holders of stock as of the record date receive the dividend.
• Two-date system: There's always an ex-dividend date (2 business days before) to let ownership settle, and the record date when the actual count happens.
• Notification: Most brokers notify you which dividends you qualify for based on your holdings as of the ex-dividend date.
• Corporate action: The record date applies to all corporate actions, not just dividends (stock splits, mergers, rights offerings).
• Multiple dates: Always check the ex-date, record date, and payment date; these are three different dates in the dividend timeline.

Limitations

• As a stock owner, you don't need to take any action regarding the record date; your broker handles the mechanics.
• The record date is set by the company's board; it's not negotiable.
• If you sell before the ex-dividend date, you forfeit the dividend even if the stock is on your account on the record date (because settlement takes 2 days).
• The record date can vary between stocks; there's no universal record date for the entire market.

Related Terms

• Ex-Dividend Date — the cutoff date before the record date for dividend eligibility
• Payment Date — when the dividend is actually paid to shareholders
• Dividend — the cash payment itself
• Transfer Agent — the company that maintains shareholder records