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From Ameritrade:
There are
typically three dates referenced with the payment of a dividend; the
ex-dividend date, the record date, and the payable date.

As a rule, the ex-dividend date is the most significant date to keep in
mind. The ex-dividend day is the first day a stock trades without a
declared dividend. Since the stock is no longer trading with the
dividend attached, the shareholder that held the shares at the market open on
the ex-dividend date would receive the dividend. Also, the price of
the stock is adjusted prior to market open (including the pre-market
session) on the ex-dividend date to reflect the price without the value of
the dividend. There is no minimum holding period that shares must be
held prior to the ex-dividend date to entitle the holder to the dividend
payment.

Shares that are purchased on (again, including the pre-market session)
or after the ex-dividend date are purchased at this lower price and
therefore, are not entitled to the dividend payment. Shareholders who
sell their shares prior to the ex-dividend date (including the extended
market session) sell the shares with the dividend still attached; in
other words, they sell the security and the expected dividend.

Therefore, if one buys shares prior to the ex-dividend date and holds
the shares until after market open on the ex-dividend date, they are
entitled to receive the dividend.

The Record Date, a date used for corporate bookkeeping and commonly
used in press releases and other news stories, is a term most often used
by Corporations and Transfer Agents. Record date does not determine who
is entitled to the dividend; it merely indicates to whom the transfer
agent will deliver the shares. If a person holds shares on the record
date but sells the shares prior to the ex-dividend date, they will
deliver the dividend with the shares. Dividends are attached to shares, not
people, so if shares are sold prior to the ex-dividend date, the
dividend goes with the shares.

The Payable Date refers to the day brokers and shareholders anticipate
the company or paying agent will pay out the dividend. This typically
occurs after market close on the payable date. Payable date is
generally after the ex-dividend date on cash dividends and prior to the
ex-dividend date of stock splits and spin-offs.

Please keep in mind there are different types of dividends, the most
common being the cash dividend. However stock splits, stock
distributions, spin-offs, and restricted distributions are all considered dividends
and therefore, similar principles apply.

The company is responsible for establishing the record date and the
payable date for any dividend. They will typically communicate this
information via a press release through a major news service, or on their
website. Once established, the exchange on which the stock trade, or the
NASD, has the option to establish the ex-dividend date. The
ex-dividend date is typically not referenced in the press release, as it is
established after the company's announcement.

Although most securities follow the rule of ex-dividend date, this will
vary with different exchanges; as a result, we suggest you request
information on a specific security to ensure accurate information.

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