# Record date

> The date a company uses to determine which shareholders are entitled to a dividend or other distribution, or to vote at a meeting.

Source: https://www.quantisnow.com/glossary/record-date
Topic: Glossary / Dividends
Also known as: date of record, holder of record date
Last updated: 2026-10-27

The record date is the date on which a company identifies the shareholders entitled to receive a declared [dividend](https://www.quantisnow.com/glossary/dividend) or other distribution. Shareholders whose trades have settled and who appear in the company's records (directly or through brokers and the depository) as of that date are paid.

## How it works

Because trades take time to settle, being a holder of record depends on when you bought:

- Under [T+1 settlement](https://www.quantisnow.com/glossary/t-plus-1), in effect in the US since May 28, 2024, a purchase settles one business day after the trade.
- For regular cash dividends, the [ex-dividend date](https://www.quantisnow.com/glossary/ex-dividend-date) is therefore normally the same day as the record date. A buyer must purchase before that day for the trade to settle in time.
- Under the old T+2 cycle, the ex-date was one business day before the record date. Older articles describing that two-day gap are now out of date.

Record dates are also used beyond dividends:

- **Shareholder meetings:** the record date in a proxy statement determines who can vote.
- **Spin-offs and rights offerings:** the record date determines who receives the new shares or rights.

## Why it matters for traders

For dividends, the record date matters mainly as the anchor for the ex-date, which is what traders act on. For proxy fights and contested votes, the meeting record date sets the voter base, so buying after it does not get you a vote. For [spin-offs](https://www.quantisnow.com/glossary/spin-off), the record date and the distribution mechanics determine whether a buyer receives the new company's shares.

## Example

Harbor Freightline (ticker HRBF) declares a $0.33 dividend payable March 10 to shareholders of record on Friday, February 20. Under T+1, the ex-dividend date is also February 20. An investor buying on Thursday, February 19, settles on February 20 and is a holder of record. One who buys on February 20 settles on February 23 and is not.

## FAQ

### What is the difference between record date and ex-dividend date?

The record date determines who is on the books to be paid. The ex-date is the trading cutoff; under T+1 they are normally the same day for regular dividends.

### Do I need to hold the stock on the record date?

You need to have bought before the ex-dividend date. You can sell on the ex-date and still receive the dividend.

## Related terms

- [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.
- [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.
- [Payment date](https://www.quantisnow.com/glossary/payment-date.md): The date a company actually pays a declared dividend to eligible shareholders, usually days or weeks after the record date.
- [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.
- [T+1 settlement](https://www.quantisnow.com/glossary/t-plus-1.md): The US standard under which most stock trades settle one business day after the trade date, in effect since May 28, 2024.
- [DEF 14A (proxy statement)](https://www.quantisnow.com/glossary/def-14a.md): The definitive proxy statement a public company files before a shareholder meeting, covering board elections, executive pay and other voting items.

## On Quantisnow

- [Dividend dates explained](https://www.quantisnow.com/guides/dividend-dates-explained)
- [Dividend tracker](https://www.quantisnow.com/dividends)
- [Proxy statements (DEF 14A) explained](https://www.quantisnow.com/guides/proxy-statements-def-14a)