Dividend Stocks 2025 – Record Date, Ex-Date & Updates

Once the company announces the dividend & its record date, the Investor can benefit from the dividend only if they purchase the shares at least two business days before the record date. After that, it converts to ex-dividend, which means the investor who buys the shares of the company after the cut-off date will not be eligible to receive the dividend.

Along with the announcement of dividends, the company also announces the cut-off date or record date, which allows the company to decide which shareholders are eligible for the dividend. To enjoy the benefit of the Dividend, investors must buy shares of the company before the record date, or else they won’t benefit from the dividend. Ex-date is when the company announces the dividend to its shareholders.

Reason Behind Providing Dividend:

A dividend is simply a procedure that many developed firms offer to their equity shareholders as a price or reward instead of reinvesting the profits as an investment in the company. Through providing dividends, the company gains trust, a good reputation, and more investors in the company.

However, not many companies pay dividends; instead, they use the profit towards the growth of the company by investing their money in the company itself. 

There are 2 types of dividends the firm offers: Interim and Final Dividends. 

Interim Dividend: The company declares a dividend quarterly or before the end of the fiscal year is called an Interim dividend.

Final Dividend: The company that announces the dividend after the end of the fiscal year is called the Final Dividend.

Let’s understand the Cash Dividend Calculation:

Here is how you calculate: FV*Percentage of Dividend/100

For example, if the Face Value of the company is Rs. 10, and the company declares a Dividend of 100%, and you hold 100 shares. 

10*100%/100 = 10, meaning the shareholder will receive the Rs. 10 dividend per share. 

If the investor holds 200 shares in the company, the calculation shows that the investor will receive Rs. 2000 of dividends per share.