How are stock dividends actually paid, and what dates matter?

A dividend is a portion of a company's profits paid to shareholders, usually in cash deposited to your brokerage account, and a few dates govern who gets it. The declaration date is when the company announces the dividend. The ex-dividend date is the cutoff: you must own the stock before this date to receive the upcoming payment – buy on or after it and the seller keeps that dividend. The record date confirms the shareholder list, and the payment date is when the cash actually lands. Most U.S. companies that pay dividends do so quarterly, though some funds pay monthly or annually. You can take dividends as cash or reinvest them automatically. In a taxable account, they're taxed in the year paid – 'qualified' dividends at lower long-term rates if holding requirements are met, otherwise at your ordinary income rate.