Dividends are made up of the sum of money paid out regularly by a company to its shareholders from its profits/reserves. If you often trade dividend stocks, you need to know the most important dates.
The two most important dates with reference to dividend payments are the: ex-dividend date and payment date. The ex-dividend date arises when dividends on shares are paid and are only payable if purchased prior to the ex-dividend date. The payment date is when dividends are paid via electronic transfer or mail of relevant investors.