Payment Date.
In plain English
The payment date (also called the payable date) is when the company actually distributes the dividend to qualifying shareholders. It is the last step in the dividend timeline, coming after the ex-dividend date and the record date. The board announces this date along with the dividend. On the payment date, the cash shows up in your brokerage account, or, if you use automatic reinvestment, it is used to buy more shares.
01Why it matters
The payment date is when the money is real and spendable. Knowing it sets your expectations: qualifying for a dividend on the record date does not mean the cash arrives that same day, it can be a few weeks later.
02The math, step by step
A company declares a dividend with a record date of June 13 and a payment date of July 1. You qualified by owning shares in time, but you do not see the cash until July 1, when $100 (for your 100 shares at $1 each) appears in your account. If you have reinvestment turned on, that $100 instead buys you additional shares automatically on or near that date.
03What this is NOT
The record date is only when the company confirms you qualify. The payment date is the later day the money actually moves into your account. Qualifying and getting paid are two separate steps, often weeks apart.
04Receipts
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Plain-English answers from our glossary. Receipts included. Never advice.
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