Glossary · Defined term
Payment date
The payment date is the day a declared dividend is actually paid out to shareholders of record. Definition plus a worked dividend timeline example.
Last updated Oct 2, 2026
What it means
The payment date is the day a declared dividend is actually paid out to shareholders of record. It typically falls several weeks after the record date, giving the company time to process the shareholder register and distribute the cash. On the payment date, the dividend lands in brokerage accounts as cash, or as additional shares for investors enrolled in dividend reinvestment plans. The payment date is the last step in the dividend timeline, which runs from declaration to ex-dividend date to record date to payment. Investors tracking dividend income watch this date to know when the cash actually arrives.
An example
For illustration, a company declares a dividend on March 1 with a record date of March 15 and a payment date of April 5. Shareholders who owned the stock before the ex-dividend date see the cash arrive on April 5. Between the record date and April 5, the dividend is owed but not yet paid.