The AI (ChatGPT) Dividend Handbook: Dividend Record Date

Here is the response from ChatGPT for the prompt dividend record date entered on March 21, 2023.

The record date, also known as the date of record, is the cut-off date established by a company's board of directors to determine which shareholders are entitled to receive a dividend payment. Shareholders who are listed on the company's books as of the record date will receive the upcoming dividend payment, regardless of whether they sell their shares after the record date.

The record date is important for shareholders because it establishes their eligibility to receive the dividend payment. If an investor purchases shares after the record date, they will not be eligible to receive the dividend payment for that period. Conversely, if an investor owns shares before the record date, they will be entitled to the dividend payment, even if they sell their shares after the record date.

The record date is typically set by the company's board of directors and is announced along with the company's dividend payment schedule. It is usually a few weeks after the ex-dividend date, which is the date on which the stock begins trading without the upcoming dividend payment.