Record Date

The record date (also called the date of record) is the cutoff date established by a company's board of directors to determine which shareholders are entitled to receive a declared dividend, stock split, rights offering, or other corporate action. To be a "shareholder of record" on this date, an investor must own shares before the ex-dividend date, which is typically one business day before the record date due to the T+1 settlement cycle. The sequence of important dates for dividends is: declaration date (board announces dividend) → ex-dividend date (first day stock trades without dividend) → record date (shareholder list is finalized) → payment date (dividend is distributed). Understanding the record date is essential for income investors who want to ensure they qualify for dividend payments and for traders who use dividend capture strategies.