How long do you have to own a stock before you receive the dividend payout? Example....VTSAX pays dividends out quarterly. If you buy VTSAX a day before its June dividend payout do you qualify for it?
The "record date" or "date of record" and the "ex-dividend date" or "ex-date" are the two dates that are determinative of an investor's eligibility to receive a dividend.
When a firm's management decides to pay a dividend it will establish a record date.
If the investor does not own the firm's security on the record date they are not eligible to receive the dividend.
After the firm establishes the record date the ex-dividend date is determined by rules of the stock exchange.
The ex-dividend date is the date on which the security's price decreases by the amount of the dividend.
Typically the ex-dividend date is the day before the record date.
If the investor purchases the firm's security on or after its ex-dividend date they are not eligible to receive the dividend.
