Investing term

What is Pay date?

The date the cash actually lands in your brokerage account.

The pay date is when a declared dividend actually lands in your brokerage account, the final step after the declaration, ex-, and record dates. Until the pay date the dividend is committed but not yet in hand. If you reinvest dividends, the pay date is when the cash arrives to buy your additional shares.

For example

A dividend declared in April with a May pay date means the cash hits your account in May — the day the promised money becomes real.

Pay date is taught hands-on in Stage 8 — Corporate Actions: What Lands in Your Account.

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Related terms

AcquisitionOne company buys another. The bought company's shares are converted to cash, acquirer stock, or a mix at the closing price.Carve-outA parent company sells part of a subsidiary in an IPO, keeping a stake.Corporate actionAny event initiated by a company that changes its securities or distributes value to holders.Cost basisWhat you originally paid for a holding, used to calculate gains and losses when you eventually sell.
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