Glossary · Defined term
Record date
The record date is the day a company checks its shareholder register to decide who receives a declared dividend.
Last updated Oct 2, 2026
What it means
The record date is the day a company checks its shareholder register to determine who receives a declared dividend. You must be listed as a shareholder on this date to get the payment. Under the T+1 settlement cycle, the ex-dividend date falls one business day before the record date, so buying before the ex-dividend date is what actually secures the dividend. The record date itself involves no trading action by investors; it is an administrative cutoff for the company's books. Dividends are then paid out on the later payment date.
An example
For illustration, a company sets a record date of Friday, making Thursday the ex-dividend date. An investor who buys on Thursday, the ex-dividend date itself, will not receive the dividend even though the trade settles on the record date. The purchase had to happen before the ex-dividend date.