What importance Dividend Dates have in UK Dividend Paying Stocks

Stocks are a great source of income for investors in UK. Investors usually always keep searching kind of stocks which can provide them better return on a minimal investment made by them. Dividends are first approved by the company's board of directors or governing committee. For Companies operating in public sector there are some important dividend dates UK to remember i.e. Dividend Declaration, in dividend, ex dividend and book closure date. Brief Introduction about these dates are as below;

Declaration Dates:

Date on which company announces or show the intention of paying Div Yield to its shareholders in UK. On the same day a liability is created and company record this and also announce a payment date.

In Dividend Date:

It's the last day officially which is one day before the ex-div date for a particular stock reached. After this stock will be known as stocks including divs. After this stocks will become ex dividend. Anyone who own the shares on this has the right to get the divs from company. Person who will sell the stock on this day will be no longer eligible to receive div money from company.

Ex Dividend Date:

It's known as the date on which all the sold and bought shares no longer are eligible to receive the most recently declared dividends. Ex-Dividend has a vital importance for a company who have many shareholders. Existing holders of the stocks will be eligible to receive the money while person who will buy a stock on ex dividend date will not be eligible but there is one hidden benefit for those who buys the stocks on ex dividend date as stock's prices will come down up to a margin typically dividend paid by the company for that stocks to their existing shareholder.

Book Closure Date: it's known on which company closes the books for transferring the recently declared.

Record Date: Shareholders who are registered till this will be eligible to receive money by the company and shareholders who are not registered till record date will not receive anything from company.

One can take benefit by screening those stocks which are going to be ex dividend in next 10 or 20 business days or by searching those stocks which are providing great yields to their shareholders in UK.

Author has been writing articles on UK Dividends, Ftse Dividends since a decade. This article was based on Top dividend Yield UK Dividends.