{"id":2220,"date":"2019-09-12T17:42:00","date_gmt":"2019-09-12T17:42:00","guid":{"rendered":"https:\/\/analystprep.com\/cfa-level-1-exam\/?p=2220"},"modified":"2026-03-11T07:33:28","modified_gmt":"2026-03-11T07:33:28","slug":"dividend-payment-chronology","status":"publish","type":"post","link":"https:\/\/analystprep.com\/cfa-level-1-exam\/corporate-finance\/dividend-payment-chronology\/","title":{"rendered":"Dividend Payment Chronology"},"content":{"rendered":"\n<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"QAPage\",\n  \"mainEntity\": {\n    \"@type\": \"Question\",\n    \"name\": \"If an investor purchases shares on the company\u2019s ex-dividend date, which of the following statements is accurate?\",\n    \"text\": \"If an investor purchases shares on the company\u2019s ex-dividend date, which of the following statements is accurate?\",\n    \"answerCount\": 3,\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"The investor will not receive the dividend when it is paid by the company.\"\n    },\n    \"suggestedAnswer\": [\n      {\n        \"@type\": \"Answer\",\n        \"text\": \"The investor will receive the dividend when it is paid by the company.\"\n      },\n      {\n        \"@type\": \"Answer\",\n        \"text\": \"The investor will receive a portion of the dividend when paid by the company.\"\n      }\n    ]\n  }\n}\n<\/script>\n\n\n<p>Dividend chronology describes the timeline for a series of events which take place after a company decides to pay dividends to its shareholders. Included in this chronology are the declaration date, ex-dividend date, record date and payment date, in that time order.<\/p>\n<h2><strong>Declaration Date<\/strong><\/h2>\n<p>The declaration date is the day on which a company issues a statement declaring its intent to pay a dividend. On the said date, the company also announces the holder-of-record date and the payment date.<\/p>\n<div style=\"text-align: center; margin: 22px 0;\"><a style=\"display: inline-flex; align-items: center; justify-content: center; padding: 10px 18px; border: 2px solid #1e5bd8; color: #1e5bd8; border-radius: 9999px; text-decoration: none; font-weight: 600;\" href=\"https:\/\/analystprep.com\/free-trial\/\" target=\"_blank\" rel=\"noopener noreferrer\"> Practice dividend chronology questions for CFA Level I <\/a><\/div>\n<h2><strong>Ex-Dividend Date<\/strong><\/h2>\n<p>The ex-dividend date, otherwise known as the ex-date, is the first business day on which a share will trade without its dividend. As a result, investors who owned shares before and on the ex-dividend date will receive a dividend once it is paid, while investors who acquire shares on or after the ex-dividend date will not have the benefit of receiving\u00a0 dividend.<\/p>\n<h2><strong>Holder-of-Record Date<\/strong><\/h2>\n<p>The holder-of-record date, or simply the record date, as determined by a company, is the business day on which a shareholder that is listed in the company\u2019s records is deemed to have ownership of the company\u2019s shares for the purpose of deciding who can and who cannot receive a dividend when paid.<\/p>\n<p>The record date is typically one or two business days after the ex-date.<\/p>\n<h2><strong>Payment Date<\/strong><\/h2>\n<p>The payment date or payable date is the date on which a company mails or transfers dividend payments to its shareholders on record.<\/p>\n<p>The payment date does not have to be a business day. It can also occur on a weekend or holiday.<\/p>\n<blockquote>\n<h2><strong>Question<\/strong><\/h2>\n<p>If an investor purchases shares on the company\u2019s ex-dividend date, which of the following statements is accurate?<\/p>\n<p>A. The investor will receive the dividend when it is paid by the company<\/p>\n<p>B. The investor will not receive the dividend when it is paid by the company<\/p>\n<p>C. The investor will receive a portion of the dividend when paid by the company<\/p>\n<p><strong>Solution<\/strong><\/p>\n<p>The correct answer is B.<\/p>\n<p>Since the ex-dividend date is the first date on which shares trade without (i.e. \u201cex\u201d) a dividend, if a buyer purchases shares on the ex-dividend date, the seller of the shares, and not the buyer will receive the dividend.<\/p>\n<\/blockquote>\n<p><em>Reading 38 LOS 38b:<\/em><\/p>\n<p><em>Describe dividend payment chronology, including the significance of declaration, holder-of-record, ex-dividend, and payment dates<\/em><\/p>\n<div class=\"notes_inv\"><hr \/>\n<p><a href=\"https:\/\/analystprep.com\/cfa-level-1-exam\/corporate-finance\/learning-sessions-curriculum-corporate-finance\/\"><em>Corporate Finance &#8211; Learning Sessions<\/em><\/a><\/p>\n<div style=\"text-align: center; margin: 30px 0;\"><a style=\"display: inline-flex; align-items: center; justify-content: center; padding: 12px 26px; border-radius: 9999px; background: #1e5bd8; color: #ffffff; font-weight: bold; text-decoration: none;\" href=\"https:\/\/analystprep.com\/free-trial\/\" target=\"_blank\" rel=\"noopener noreferrer\"> Start Free Trial \u2192 <\/a>\n<p style=\"margin-top: 12px; font-size: 16px; line-height: 1.5;\">Strengthen your understanding of dividend payment chronology\u2014including declaration date, ex-dividend date, record date, and payment date\u2014with CFA-style practice questions.<\/p>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Dividend chronology describes the timeline for a series of events which take place after a company decides to pay dividends to its shareholders. Included in this chronology are the declaration date, ex-dividend date, record date and payment date, in that&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[6],"tags":[],"class_list":["post-2220","post","type-post","status-publish","format-standard","hentry","category-corporate-finance","blog-post","no-post-thumbnail","animate"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Dividend Payment Timeline | CFA Level 1<\/title>\n<meta name=\"description\" content=\"Dividend chronology outlines key dates, including the declaration, record, and payment dates, in the process of distributing dividends to shareholders.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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