# Payment date

> The date a company actually pays a declared dividend to eligible shareholders, usually days or weeks after the record date.

Source: https://www.quantisnow.com/glossary/payment-date
Topic: Glossary / Dividends
Also known as: pay date, payable date, dividend payment date
Last updated: 2026-10-27

The payment date (also called the payable date) is the day a company distributes a declared [dividend](https://www.quantisnow.com/glossary/dividend) to shareholders who were eligible as of the [record date](https://www.quantisnow.com/glossary/record-date). The cash is sent through the company's paying agent and the depository to brokers, which credit investors' accounts.

## How it works

The payment date is set by the board at the declaration date. The gap between record date and payment date varies by company, often from a few days to several weeks, to allow the transfer agent to reconcile the shareholder list.

- **Cash dividends** arrive in brokerage accounts on the payment date, sometimes appearing a day later depending on the broker.
- **[DRIP](https://www.quantisnow.com/glossary/drip) participants** have the cash used to buy additional shares on or around the payment date.
- **Large distributions:** when a dividend equals roughly 25% or more of the share price, the ex-dividend date is set after the payment date, the reverse of the normal order.

Owning the stock on the payment date is not required. What matters is buying before the [ex-dividend date](https://www.quantisnow.com/glossary/ex-dividend-date).

## Why it matters for traders

The payment date usually has little effect on the stock price; the price adjustment for the dividend happens on the ex-date. It matters for cash planning, for tracking when reinvested shares arrive, and for the large-distribution exception, where the ex-date timing changes and sellers before the ex-date must deliver the dividend to buyers through due bills. For companies under financial stress, a declared dividend actually being paid on schedule can also be a small confirmation that cash is available.

## Example

Cobalt Ridge Mining (ticker CBRM) declares a $0.25 quarterly dividend with a record date of June 12 and a payment date of June 30. An investor who owned 2,000 shares before the June 12 ex-date and sold them on June 15 still receives $500 on June 30.

## FAQ

### Do I need to own the stock on the payment date?

No. Eligibility is set by buying before the ex-dividend date. You can sell before the payment date and still be paid.

### Why is there a delay between the record date and payment date?

The company and its transfer agent need time to finalize the list of eligible holders and arrange the funds.

## Related terms

- [Dividend](https://www.quantisnow.com/glossary/dividend.md): A distribution of a company's profits or cash to shareholders, usually paid in cash on a regular schedule after being declared by the board.
- [Record date](https://www.quantisnow.com/glossary/record-date.md): The date a company uses to determine which shareholders are entitled to a dividend or other distribution, or to vote at a meeting.
- [Ex-dividend date](https://www.quantisnow.com/glossary/ex-dividend-date.md): The first trading day on which a stock trades without the right to its next dividend; buyers on or after this date do not receive it.
- [Declaration date](https://www.quantisnow.com/glossary/declaration-date.md): The date a company's board announces a dividend, setting its amount, ex-dividend date, record date and payment date.
- [Dividend reinvestment plan (DRIP)](https://www.quantisnow.com/glossary/drip.md): A program that automatically uses an investor's cash dividends to buy more shares of the same stock, often including fractional shares.
- [Special dividend](https://www.quantisnow.com/glossary/special-dividend.md): A one-time dividend paid outside a company's regular schedule, often after an asset sale, a windfall or a buildup of excess cash.

## On Quantisnow

- [Dividend dates explained](https://www.quantisnow.com/guides/dividend-dates-explained)
- [Dividend tracker](https://www.quantisnow.com/dividends)
- [Dividend announcements](https://www.quantisnow.com/categories/dividends)