At a certain point in time, the issuing company closes the books, that is, it records all shareholders. Dividends are paid according to such list; the amount of dividends is determined by the meeting of shareholders.
How are dividends paid?
1. The issuing company determines the percentage of profits that will be allocated to dividends, the date of payment, and the date of record.
2. To receive dividends, you simply need to buy stocks before the date of record (cut-off date). Such dates can be tracked in special calendars.
3. The stocks have been bought and the register is closed. Anyone who buys later will not receive dividends this time.
Important! It is necessary to take into account the T+2 trading mode, when you become the actual owner of the securities only when the settlements are completed.
4. After date of record and a certain start date for payments, dividends will be paid and credited to shareholders' brokerage accounts within an average of 30 days (payment deadlines may vary). Dividends will be received net of taxes - all information will be reflected in the broker's report on your account.
The profit received can be withdrawn to the bank, or you can buy more stocks with it in order to receive more dividends in the future.