Fundamental Glossary / Dividend Metrics
Record Date
The date on which the company looks at its register and decides who is entitled to the dividend or other corporate action.
Formula
Holders on the register at the record date, after settlement of trades done before the ex-date, receive the benefit.
What it means
The record date is a register fact. The ex-dividend date is the market fact that lines up with it, given the settlement cycle.
The same mechanism is used for bonus issues, rights, and stock splits. The record date says who is on the list.
How to read it
You do not need to hold the shares until the payment date. You need to be the entitled holder as of the record date. Selling after the ex-date does not give the dividend back.
What to watch
A trade that has not settled by the record date does not put the buyer on the register. That is why the exchange publishes an ex-date rather than asking investors to do the settlement arithmetic.
This note explains the term. It is not a research recommendation, a target price, or a comment on any security. Ratios and regulatory thresholds change; use the latest filing or circular for a live figure.