{"content_id":"qnlsugbclz","slug":"when-who-gets-stock-dividends","locale":"en","schema_type":"Article","category":"knowledge_base","category_name":"Knowledge Base","title":"When and Who Is Eligible to Receive Dividends? A Complete Guide to the Ex-Dividend Date and Record Date","summary":"A dividend is the amount a company distributes to shareholders as a portion of its profits, and investors who are confirmed as shareholders as of the ex-dividend date are eligible to receive it. For domestically listed stocks, considering the T+2 settlement cycle, shares must generally be purchased at least two business days before the ex-dividend date.","key_points":["A dividend is a distribution of profits that a company pays to its shareholders within the limits of legal and financial conditions, such as distributable earnings.","Eligible recipients of dividends are investors who are confirmed as shareholders on the record date.","Since domestic listed stocks follow a T+2 settlement structure, it is generally necessary to execute a purchase order at least two business days before the dividend record date.","The ex-dividend date is the first day on which the stock trades without the right to receive the dividend; if you buy the stock on this date, you generally will not be eligible to receive the current dividend.","Since the dividend amount, record date, and payment date are ultimately determined by each company’s official announcements, you should check DART, KRX KIND, SEIBro, and the company’s IR materials."],"content_markdown":"A dividend is money or property distributed to shareholders as a portion of a company’s profits. The most important criterion for investing in dividend stocks is not the holding period, but whether you are “confirmed as a shareholder on the dividend record date.”\n\n## Key Answer\n\n- **Who receives dividends**: Anyone who is confirmed as a shareholder on the record date.\n- **Deadline for Purchasing Domestically Listed Stocks**: Generally, a purchase must be **settled at least two business days before the record date**. This is because domestically listed stocks follow a T+2 settlement structure, meaning settlement occurs two trading days after the trade date.\n- **Ex-dividend date**: This is the date after which any shares purchased will not carry the right to receive the dividend. It is usually easiest to understand this as the business day following the “last day to buy.”\n- **Dividend payment date**: Dividends are deposited into your securities account on the scheduled payment date announced by the company following the resolution or approval of the dividend.\n\n## What Are Dividends?\n\nDividends are a distribution of a company’s profits to its shareholders. A company is not required to pay dividends simply because it has made a profit; the decision is based on a comprehensive consideration of distributable profits, the articles of incorporation, resolutions by the board of directors or the shareholders’ meeting, and the company’s investment plans and financial condition.\n\nUnder the Commercial Act, dividend distributions are generally based on the number of shares held by shareholders. Therefore, for common stock of the same class, the more shares you hold, the larger your dividend will be proportionally.\n\n### Major Types of Dividends\n\n| Category | Meaning | What Investors Need to Know |\n|---|---|---|\n| Cash Dividend | A method of paying dividends to shareholders in cash | This is the most common form; dividends are deposited into the shareholder’s account after taxes are withheld at source. |\n| Stock Dividend | A method of paying dividends in the form of newly issued shares | While the number of shares held increases, the total number of shares outstanding also increases, which may dilute the value per share. |\n| In-Kind Dividend | A method of distributing dividends in the form of assets other than cash or stock | This is a relatively rare form for investors in publicly traded stocks. |\n| Special Dividend | A dividend that is largely one-time in nature, unlike recurring regular dividends | You should not assume that it will be repeated at the same level the following year. |\n| Interim/Quarterly Dividends | Dividends paid in the middle of the fiscal year | You must verify the company’s articles of incorporation, board resolutions, and relevant legal requirements. |\n\n## When Should You Buy Stocks to Receive Dividends?\n\nThe right to receive dividends is determined on the **dividend record date**. The dividend record date is the day the company determines which shareholders are eligible to receive the current dividend.\n\nHowever, the date you place an order for shares and the date the transaction is actually settled and you are registered as a shareholder are different. For domestic exchange-traded stocks, settlement is generally on a **T+2 basis**. In other words, if you execute a purchase on Monday, settlement occurs on Wednesday, assuming there are no public holidays.\n\n### Calculation Method for Domestically Listed Stocks\n\n| Item | Meaning | Practical Understanding |\n|---|---|---|\n| Dividend Record Date | The date on which shareholders eligible for dividends are determined | You must be registered as a shareholder by this date. |\n| Last Trading Day | The last day to buy shares to receive the current dividend | Usually two business days before the dividend record date. |\n| Ex-Dividend Date | The first day the stock trades without the right to receive the dividend | If you buy on this day, you generally will not receive the current dividend. |\n| Payment Date | The date the actual dividend is deposited | Check the scheduled dividend payment date in the company’s public announcement. |\n\nFor example, if the ex-dividend date is Friday and there are no market holidays in between, you must complete a purchase by Wednesday to be settled by Friday and qualify as a shareholder of record. Since Thursday is the ex-dividend date, investors who purchase shares on Thursday are generally not eligible for this dividend.\n\nConversely, if you purchase shares by Wednesday and secure dividend rights, you will generally retain those rights even if you sell after Thursday, the ex-dividend date. However, for special circumstances such as market holidays, settlement exceptions, or securities lending and rights processing, you should check with your brokerage firm and official announcements.\n\n## How Much Will You Receive in Dividends?\n\nThe basic calculation formula is simple.\n\n**Pre-tax dividend = Dividend per share × Number of shares held as of the record date**\n\nFor example, if a company pays a cash dividend of 1,000 won per share and an investor holds 100 shares as of the record date, the pre-tax dividend is 100,000 won.\n\nCash dividends from general domestic taxable accounts are taxed as dividend income. For domestic residents, 14% income tax and 1.4% local income tax are typically withheld at source, resulting in a total deduction of 15.4% before the funds are deposited. However, the after-tax amount may vary depending on whether the account is an ISA, a pension account, held by a non-resident, a corporation, or involves foreign stocks, as well as whether a tax treaty applies.\n\n## When Will the Dividends Be Deposited?\n\nThe dividend payment date varies by company. Year-end dividends are typically paid after the financial statements are approved and a dividend resolution is passed, while interim or quarterly dividends are paid according to the company’s schedule following a board resolution.\n\nThe Commercial Act generally stipulates that dividends must be paid within one month of the dividend resolution date; however, the general meeting of shareholders or the board of directors may set a different payment date. Therefore, investors must always check the company’s public disclosures for the actual payment date.\n\nCash dividends for listed stocks held in a securities account are generally automatically deposited into the account without requiring a separate request. The deposit description may vary by brokerage firm and is often shown as the amount after taxes have been withheld at source.\n\n## Where can I check the dividend record date and ex-dividend date?\n\nDo not guess the dividend schedule; always verify it through official announcements. In particular, since 2023, there has been a trend in the domestic market to improve procedures so that investors can first confirm the dividend amount before the ex-dividend date. However, since not all companies operate in the same way, each company’s articles of incorporation and official announcements serve as the final reference.\n\n| Where to Check | Information Available |\n|---|---|\n| DART Electronic Disclosure | Decisions on cash and in-kind dividends, stock dividends, record date for the shareholder register, and results of the annual general meeting |\n| KRX KIND Dividend Information | Information based on dividend-related disclosures by listed companies, historical dividend records |\n| Korea Securities Depository (KSD) SEIBro | Dividend schedule, record date, payment date, and other entitlement dates |\n| Company IR Page | Dividend policy, shareholder return policy, dividend payout ratio target |\n| Brokerage Firm Apps | Estimated dividends, ex-dividend date, deposit history, after-tax amount |\n\n## Why Do Stock Prices Move on the Ex-Dividend Date?\n\nOn the ex-dividend date, shares are theoretically traded without the right to receive dividends. Therefore, the stock price may drop by the amount of the dividend. However, the actual stock price is not determined by the dividend alone. Earnings outlook, market supply and demand, interest rates, exchange rates, sector sentiment, and investor psychology all play a role.\n\nConsequently, a strategy of buying immediately before the ex-dividend date solely to receive the dividend can be risky. If the stock price drops more than the dividend amount, your total return may suffer.\n\n## Key Metrics for Dividend Investors\n\n| Metric | Calculation or Meaning | Key Points |\n|---|---|---|\n| Dividend Per Share (DPS) | Dividend paid per share | This is the starting point for calculating the actual amount you will receive. |\n| Dividend Yield | Annual Dividend Per Share ÷ Stock Price × 100 | It is important to distinguish between the yield based on the current price and the yield based on your purchase price. |\n| Dividend Payout Ratio | Total Dividends ÷ Net Income | If it is excessively high, you should assess its sustainability. |\n| Free Cash Flow | Surplus funds remaining after subtracting investment expenditures from cash flow from operating activities | This provides a more realistic indication of a company’s ability to pay dividends than accounting profit. |\n| Dividend History | Record of past dividend maintenance, increases, and cuts | This serves as a reference for determining whether a stock is a stable dividend stock. |\n| Debt and Interest Expenses | Debt burden and financial costs | Even with high dividends, there is a risk of cuts if the financial burden is heavy. |\n\n## Common Misconceptions\n\n### Can I receive a dividend even if I hold the stock for just one day?\n\nIt is possible. The key factor is whether you are a shareholder as of the dividend record date, not the entire holding period. However, for domestically listed stocks, you must purchase the shares before the record date, taking into account the T+2 settlement cycle.\n\n### Can I receive a dividend if I buy on the dividend record date?\n\nGenerally, you cannot receive a dividend for domestically listed stocks. This is because if you buy on the record date itself, settlement will be delayed until after the record date.\n\n### If I sell on the ex-dividend date, do I lose the dividend?\n\nIf you purchased the stock before the ex-dividend date and met the conditions to be a shareholder on the record date, you generally retain your right to the dividend even if you sell after the ex-dividend date.\n\n### Are stocks with high dividends always a good investment?\n\nNot necessarily. A high dividend yield may appear high due to a decline in the stock price, or it could be a one-time special dividend. You need to consider the sustainability of dividends, earnings growth, cash flow, and debt burden together.\n\n## Summary\n\nThe key requirement for receiving dividends is “being confirmed as a shareholder on the dividend record date.” Due to the T+2 settlement structure for domestically listed stocks, you generally need to purchase shares at least two business days before the dividend record date; if you buy on the ex-dividend date, you typically won’t be eligible for that dividend.\n\nInvesting in dividend stocks is not just about the dividends themselves. To more accurately assess the actual rate of return, you must also consider the ex-dividend date, the record date, the payment date, taxes, the dividend payout ratio, and the company’s cash flow.","content_html":"\u003cp\u003eA dividend is money or property distributed to shareholders as a portion of a company’s profits. The most important criterion for investing in dividend stocks is not the holding period, but whether you are “confirmed as a shareholder on the dividend record date.”\u003c/p\u003e\n\u003ch2\u003e\u003ca href=\"#key-answer\" class=\"anchor\" id=\"key-answer\"\u003e\u003c/a\u003eKey Answer\u003c/h2\u003e\n\u003cul\u003e\n\u003cli\u003e\u003cstrong\u003eWho receives dividends\u003c/strong\u003e: Anyone who is confirmed as a shareholder on the record date.\u003c/li\u003e\n\u003cli\u003e\u003cstrong\u003eDeadline for Purchasing Domestically Listed Stocks\u003c/strong\u003e: Generally, a purchase must be \u003cstrong\u003esettled at least two business days before the record date\u003c/strong\u003e. This is because domestically listed stocks follow a T+2 settlement structure, meaning settlement occurs two trading days after the trade date.\u003c/li\u003e\n\u003cli\u003e\u003cstrong\u003eEx-dividend date\u003c/strong\u003e: This is the date after which any shares purchased will not carry the right to receive the dividend. It is usually easiest to understand this as the business day following the “last day to buy.”\u003c/li\u003e\n\u003cli\u003e\u003cstrong\u003eDividend payment date\u003c/strong\u003e: Dividends are deposited into your securities account on the scheduled payment date announced by the company following the resolution or approval of the dividend.\u003c/li\u003e\n\u003c/ul\u003e\n\u003ch2\u003e\u003ca href=\"#what-are-dividends\" class=\"anchor\" id=\"what-are-dividends\"\u003e\u003c/a\u003eWhat Are Dividends?\u003c/h2\u003e\n\u003cp\u003eDividends are a distribution of a company’s profits to its shareholders. A company is not required to pay dividends simply because it has made a profit; the decision is based on a comprehensive consideration of distributable profits, the articles of incorporation, resolutions by the board of directors or the shareholders’ meeting, and the company’s investment plans and financial condition.\u003c/p\u003e\n\u003cp\u003eUnder the Commercial Act, dividend distributions are generally based on the number of shares held by shareholders. Therefore, for common stock of the same class, the more shares you hold, the larger your dividend will be proportionally.\u003c/p\u003e\n\u003ch3\u003e\u003ca href=\"#major-types-of-dividends\" class=\"anchor\" id=\"major-types-of-dividends\"\u003e\u003c/a\u003eMajor Types of Dividends\u003c/h3\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eCategory\u003c/th\u003e\n\u003cth\u003eMeaning\u003c/th\u003e\n\u003cth\u003eWhat Investors Need to Know\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd\u003eCash Dividend\u003c/td\u003e\n\u003ctd\u003eA method of paying dividends to shareholders in cash\u003c/td\u003e\n\u003ctd\u003eThis is the most common form; dividends are deposited into the shareholder’s account after taxes are withheld at source.\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eStock Dividend\u003c/td\u003e\n\u003ctd\u003eA method of paying dividends in the form of newly issued shares\u003c/td\u003e\n\u003ctd\u003eWhile the number of shares held increases, the total number of shares outstanding also increases, which may dilute the value per share.\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eIn-Kind Dividend\u003c/td\u003e\n\u003ctd\u003eA method of distributing dividends in the form of assets other than cash or stock\u003c/td\u003e\n\u003ctd\u003eThis is a relatively rare form for investors in publicly traded stocks.\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eSpecial Dividend\u003c/td\u003e\n\u003ctd\u003eA dividend that is largely one-time in nature, unlike recurring regular dividends\u003c/td\u003e\n\u003ctd\u003eYou should not assume that it will be repeated at the same level the following year.\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eInterim/Quarterly Dividends\u003c/td\u003e\n\u003ctd\u003eDividends paid in the middle of the fiscal year\u003c/td\u003e\n\u003ctd\u003eYou must verify the company’s articles of incorporation, board resolutions, and relevant legal requirements.\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003ch2\u003e\u003ca href=\"#when-should-you-buy-stocks-to-receive-dividends\" class=\"anchor\" id=\"when-should-you-buy-stocks-to-receive-dividends\"\u003e\u003c/a\u003eWhen Should You Buy Stocks to Receive Dividends?\u003c/h2\u003e\n\u003cp\u003eThe right to receive dividends is determined on the \u003cstrong\u003edividend record date\u003c/strong\u003e. The dividend record date is the day the company determines which shareholders are eligible to receive the current dividend.\u003c/p\u003e\n\u003cp\u003eHowever, the date you place an order for shares and the date the transaction is actually settled and you are registered as a shareholder are different. For domestic exchange-traded stocks, settlement is generally on a \u003cstrong\u003eT+2 basis\u003c/strong\u003e. In other words, if you execute a purchase on Monday, settlement occurs on Wednesday, assuming there are no public holidays.\u003c/p\u003e\n\u003ch3\u003e\u003ca href=\"#calculation-method-for-domestically-listed-stocks\" class=\"anchor\" id=\"calculation-method-for-domestically-listed-stocks\"\u003e\u003c/a\u003eCalculation Method for Domestically Listed Stocks\u003c/h3\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eItem\u003c/th\u003e\n\u003cth\u003eMeaning\u003c/th\u003e\n\u003cth\u003ePractical Understanding\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd\u003eDividend Record Date\u003c/td\u003e\n\u003ctd\u003eThe date on which shareholders eligible for dividends are determined\u003c/td\u003e\n\u003ctd\u003eYou must be registered as a shareholder by this date.\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eLast Trading Day\u003c/td\u003e\n\u003ctd\u003eThe last day to buy shares to receive the current dividend\u003c/td\u003e\n\u003ctd\u003eUsually two business days before the dividend record date.\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eEx-Dividend Date\u003c/td\u003e\n\u003ctd\u003eThe first day the stock trades without the right to receive the dividend\u003c/td\u003e\n\u003ctd\u003eIf you buy on this day, you generally will not receive the current dividend.\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003ePayment Date\u003c/td\u003e\n\u003ctd\u003eThe date the actual dividend is deposited\u003c/td\u003e\n\u003ctd\u003eCheck the scheduled dividend payment date in the company’s public announcement.\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eFor example, if the ex-dividend date is Friday and there are no market holidays in between, you must complete a purchase by Wednesday to be settled by Friday and qualify as a shareholder of record. Since Thursday is the ex-dividend date, investors who purchase shares on Thursday are generally not eligible for this dividend.\u003c/p\u003e\n\u003cp\u003eConversely, if you purchase shares by Wednesday and secure dividend rights, you will generally retain those rights even if you sell after Thursday, the ex-dividend date. However, for special circumstances such as market holidays, settlement exceptions, or securities lending and rights processing, you should check with your brokerage firm and official announcements.\u003c/p\u003e\n\u003ch2\u003e\u003ca href=\"#how-much-will-you-receive-in-dividends\" class=\"anchor\" id=\"how-much-will-you-receive-in-dividends\"\u003e\u003c/a\u003eHow Much Will You Receive in Dividends?\u003c/h2\u003e\n\u003cp\u003eThe basic calculation formula is simple.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003ePre-tax dividend = Dividend per share × Number of shares held as of the record date\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eFor example, if a company pays a cash dividend of 1,000 won per share and an investor holds 100 shares as of the record date, the pre-tax dividend is 100,000 won.\u003c/p\u003e\n\u003cp\u003eCash dividends from general domestic taxable accounts are taxed as dividend income. For domestic residents, 14% income tax and 1.4% local income tax are typically withheld at source, resulting in a total deduction of 15.4% before the funds are deposited. However, the after-tax amount may vary depending on whether the account is an ISA, a pension account, held by a non-resident, a corporation, or involves foreign stocks, as well as whether a tax treaty applies.\u003c/p\u003e\n\u003ch2\u003e\u003ca href=\"#when-will-the-dividends-be-deposited\" class=\"anchor\" id=\"when-will-the-dividends-be-deposited\"\u003e\u003c/a\u003eWhen Will the Dividends Be Deposited?\u003c/h2\u003e\n\u003cp\u003eThe dividend payment date varies by company. Year-end dividends are typically paid after the financial statements are approved and a dividend resolution is passed, while interim or quarterly dividends are paid according to the company’s schedule following a board resolution.\u003c/p\u003e\n\u003cp\u003eThe Commercial Act generally stipulates that dividends must be paid within one month of the dividend resolution date; however, the general meeting of shareholders or the board of directors may set a different payment date. Therefore, investors must always check the company’s public disclosures for the actual payment date.\u003c/p\u003e\n\u003cp\u003eCash dividends for listed stocks held in a securities account are generally automatically deposited into the account without requiring a separate request. The deposit description may vary by brokerage firm and is often shown as the amount after taxes have been withheld at source.\u003c/p\u003e\n\u003ch2\u003e\u003ca href=\"#where-can-i-check-the-dividend-record-date-and-ex-dividend-date\" class=\"anchor\" id=\"where-can-i-check-the-dividend-record-date-and-ex-dividend-date\"\u003e\u003c/a\u003eWhere can I check the dividend record date and ex-dividend date?\u003c/h2\u003e\n\u003cp\u003eDo not guess the dividend schedule; always verify it through official announcements. In particular, since 2023, there has been a trend in the domestic market to improve procedures so that investors can first confirm the dividend amount before the ex-dividend date. However, since not all companies operate in the same way, each company’s articles of incorporation and official announcements serve as the final reference.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eWhere to Check\u003c/th\u003e\n\u003cth\u003eInformation Available\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd\u003eDART Electronic Disclosure\u003c/td\u003e\n\u003ctd\u003eDecisions on cash and in-kind dividends, stock dividends, record date for the shareholder register, and results of the annual general meeting\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eKRX KIND Dividend Information\u003c/td\u003e\n\u003ctd\u003eInformation based on dividend-related disclosures by listed companies, historical dividend records\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eKorea Securities Depository (KSD) SEIBro\u003c/td\u003e\n\u003ctd\u003eDividend schedule, record date, payment date, and other entitlement dates\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eCompany IR Page\u003c/td\u003e\n\u003ctd\u003eDividend policy, shareholder return policy, dividend payout ratio target\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eBrokerage Firm Apps\u003c/td\u003e\n\u003ctd\u003eEstimated dividends, ex-dividend date, deposit history, after-tax amount\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003ch2\u003e\u003ca href=\"#why-do-stock-prices-move-on-the-ex-dividend-date\" class=\"anchor\" id=\"why-do-stock-prices-move-on-the-ex-dividend-date\"\u003e\u003c/a\u003eWhy Do Stock Prices Move on the Ex-Dividend Date?\u003c/h2\u003e\n\u003cp\u003eOn the ex-dividend date, shares are theoretically traded without the right to receive dividends. Therefore, the stock price may drop by the amount of the dividend. However, the actual stock price is not determined by the dividend alone. Earnings outlook, market supply and demand, interest rates, exchange rates, sector sentiment, and investor psychology all play a role.\u003c/p\u003e\n\u003cp\u003eConsequently, a strategy of buying immediately before the ex-dividend date solely to receive the dividend can be risky. If the stock price drops more than the dividend amount, your total return may suffer.\u003c/p\u003e\n\u003ch2\u003e\u003ca href=\"#key-metrics-for-dividend-investors\" class=\"anchor\" id=\"key-metrics-for-dividend-investors\"\u003e\u003c/a\u003eKey Metrics for Dividend Investors\u003c/h2\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eMetric\u003c/th\u003e\n\u003cth\u003eCalculation or Meaning\u003c/th\u003e\n\u003cth\u003eKey Points\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd\u003eDividend Per Share (DPS)\u003c/td\u003e\n\u003ctd\u003eDividend paid per share\u003c/td\u003e\n\u003ctd\u003eThis is the starting point for calculating the actual amount you will receive.\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eDividend Yield\u003c/td\u003e\n\u003ctd\u003eAnnual Dividend Per Share ÷ Stock Price × 100\u003c/td\u003e\n\u003ctd\u003eIt is important to distinguish between the yield based on the current price and the yield based on your purchase price.\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eDividend Payout Ratio\u003c/td\u003e\n\u003ctd\u003eTotal Dividends ÷ Net Income\u003c/td\u003e\n\u003ctd\u003eIf it is excessively high, you should assess its sustainability.\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eFree Cash Flow\u003c/td\u003e\n\u003ctd\u003eSurplus funds remaining after subtracting investment expenditures from cash flow from operating activities\u003c/td\u003e\n\u003ctd\u003eThis provides a more realistic indication of a company’s ability to pay dividends than accounting profit.\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eDividend History\u003c/td\u003e\n\u003ctd\u003eRecord of past dividend maintenance, increases, and cuts\u003c/td\u003e\n\u003ctd\u003eThis serves as a reference for determining whether a stock is a stable dividend stock.\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eDebt and Interest Expenses\u003c/td\u003e\n\u003ctd\u003eDebt burden and financial costs\u003c/td\u003e\n\u003ctd\u003eEven with high dividends, there is a risk of cuts if the financial burden is heavy.\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003ch2\u003e\u003ca href=\"#common-misconceptions\" class=\"anchor\" id=\"common-misconceptions\"\u003e\u003c/a\u003eCommon Misconceptions\u003c/h2\u003e\n\u003ch3\u003e\u003ca href=\"#can-i-receive-a-dividend-even-if-i-hold-the-stock-for-just-one-day\" class=\"anchor\" id=\"can-i-receive-a-dividend-even-if-i-hold-the-stock-for-just-one-day\"\u003e\u003c/a\u003eCan I receive a dividend even if I hold the stock for just one day?\u003c/h3\u003e\n\u003cp\u003eIt is possible. The key factor is whether you are a shareholder as of the dividend record date, not the entire holding period. However, for domestically listed stocks, you must purchase the shares before the record date, taking into account the T+2 settlement cycle.\u003c/p\u003e\n\u003ch3\u003e\u003ca href=\"#can-i-receive-a-dividend-if-i-buy-on-the-dividend-record-date\" class=\"anchor\" id=\"can-i-receive-a-dividend-if-i-buy-on-the-dividend-record-date\"\u003e\u003c/a\u003eCan I receive a dividend if I buy on the dividend record date?\u003c/h3\u003e\n\u003cp\u003eGenerally, you cannot receive a dividend for domestically listed stocks. This is because if you buy on the record date itself, settlement will be delayed until after the record date.\u003c/p\u003e\n\u003ch3\u003e\u003ca href=\"#if-i-sell-on-the-ex-dividend-date-do-i-lose-the-dividend\" class=\"anchor\" id=\"if-i-sell-on-the-ex-dividend-date-do-i-lose-the-dividend\"\u003e\u003c/a\u003eIf I sell on the ex-dividend date, do I lose the dividend?\u003c/h3\u003e\n\u003cp\u003eIf you purchased the stock before the ex-dividend date and met the conditions to be a shareholder on the record date, you generally retain your right to the dividend even if you sell after the ex-dividend date.\u003c/p\u003e\n\u003ch3\u003e\u003ca href=\"#are-stocks-with-high-dividends-always-a-good-investment\" class=\"anchor\" id=\"are-stocks-with-high-dividends-always-a-good-investment\"\u003e\u003c/a\u003eAre stocks with high dividends always a good investment?\u003c/h3\u003e\n\u003cp\u003eNot necessarily. A high dividend yield may appear high due to a decline in the stock price, or it could be a one-time special dividend. You need to consider the sustainability of dividends, earnings growth, cash flow, and debt burden together.\u003c/p\u003e\n\u003ch2\u003e\u003ca href=\"#summary\" class=\"anchor\" id=\"summary\"\u003e\u003c/a\u003eSummary\u003c/h2\u003e\n\u003cp\u003eThe key requirement for receiving dividends is “being confirmed as a shareholder on the dividend record date.” Due to the T+2 settlement structure for domestically listed stocks, you generally need to purchase shares at least two business days before the dividend record date; if you buy on the ex-dividend date, you typically won’t be eligible for that dividend.\u003c/p\u003e\n\u003cp\u003eInvesting in dividend stocks is not just about the dividends themselves. To more accurately assess the actual rate of return, you must also consider the ex-dividend date, the record date, the payment date, taxes, the dividend payout ratio, and the company’s cash flow.\u003c/p\u003e\n","tags":["Dividends","Dividend stocks","Record date","Ex dividend date","Stock investing"],"faqs":[{"question":"By when do I need to buy shares to receive dividends?","answer":"For domestically listed stocks, purchases must generally be settled at least two business days before the ex-dividend date. This is because it takes T+2 days from the settlement of the purchase to the actual settlement of the transaction."},{"question":"If I buy shares on the ex-dividend date, will I receive a dividend?","answer":"Generally, you cannot receive it. The ex-dividend date is the first day the stock trades without the right to receive that dividend, so shares purchased on that day are typically not eligible for that dividend."},{"question":"If I sell my shares on the ex-dividend date, will I not receive the dividend?","answer":"If you purchased the stock before the ex-dividend date and met the requirements to be a shareholder of record as of the dividend record date, you will generally retain your right to that dividend even if you sell the stock after the ex-dividend date."},{"question":"Are dividends distributed in proportion to the length of time the shares are held?","answer":"Regular stock dividends are not prorated based on the holding period. The key factor is whether you are a shareholder of record as of the dividend record date."},{"question":"When will the dividends be deposited into my account?","answer":"Dividends are typically deposited into a securities account on the scheduled payment date announced by the company. Year-end dividends are often paid following a resolution by the shareholders’ meeting or the board of directors."},{"question":"If the dividend is 1,000 won per share, how much will a shareholder with 100 shares receive?","answer":"The amount is 100,000 won before taxes. For standard domestic taxable accounts, dividend income tax is withheld at source, and the after-tax amount is deposited."},{"question":"What is the difference between a cash dividend and a stock dividend?","answer":"A cash dividend is a dividend paid in cash, while a stock dividend is a dividend paid in newly issued shares. A stock dividend increases the number of shares you hold, but it also increases the total number of shares outstanding."},{"question":"Where can I find the dividend record date and payment date?","answer":"You can check this information on DART’s electronic disclosure system, KRX KIND’s dividend information, the Korea Securities Depository’s SEIBro, the company’s IR page, and brokerage firm apps. The company’s official disclosure is the final authority."},{"question":"Does a high dividend yield mean it's a good dividend stock?","answer":"This isn't always the case. High yields may be due to a decline in stock prices or a one-time special dividend, so you should also examine earnings stability, cash flow, the dividend payout ratio, and debt levels."}],"sources":[{"url":"https://www.law.go.kr/lsLinkCommonInfo.do?ancYnChk=\u0026chrClsCd=010202\u0026lsJoLnkSeq=1022059955","title":"National Law Information Center, Commercial Act, Article 462: Distribution of Profits","type":"source"},{"url":"https://www.law.go.kr/lsLinkCommonInfo.do?lsJoLnkSeq=1021415895","title":"National Law Information Center, Commercial Act Article 462-2: Stock Dividends","type":"source"},{"url":"https://www.law.go.kr/lsLawLinkInfo.do?chrClsCd=010202\u0026lsJoLnkSeq=900414783","title":"National Law Information Center, Commercial Act, Article 464: Criteria for Dividend Distribution","type":"source"},{"url":"https://www.law.go.kr/LSW/lsLawLinkInfo.do?chrClsCd=010202\u0026lsJoLnkSeq=900413667","title":"National Law Information Center, Commercial Act Article 464-2: Timing of Dividend Payments","type":"source"},{"url":"https://www.fsc.go.kr/in090301/view?curPage=10\u0026dicId=1831","title":"Financial Services Commission: Explanation of Financial Terms—T+2 Settlement System","type":"source"},{"url":"https://dart.fss.or.kr/","title":"Financial Supervisory Service's Electronic Disclosure System (DART)","type":"source"},{"url":"https://kind.krx.co.kr/disclosureinfo/dividendinfo.do?method=searchDividendInfoMain","title":"Korea Exchange (KIND) Dividend Information","type":"source"},{"url":"https://seibro.or.kr/websquare/control.jsp?menuNo=21\u0026reason=103\u0026w2xPath=%2FIPORTAL%2Fuser%2Fcompany%2FBIP_CNTS01027V.xml","title":"Korea Securities Depository (SEIBro) Dividend Schedule","type":"source"},{"url":"https://www.fsc.go.kr/no010101/79358?curPage=\u0026srchBeginDt=\u0026srchCtgry=\u0026srchEndDt=\u0026srchKey=\u0026srchText=","title":"Financial Services Commission Press Release: We Will Improve Dividend Procedures to Enable Investors to Make Investment Decisions Based on Dividend Amounts","type":"source"},{"url":"https://www.fsc.go.kr/no010101/83741?curPage=\u0026srchBeginDt=\u0026srchCtgry=\u0026srchEndDt=\u0026srchKey=\u0026srchText=","title":"Financial Services Commission Press Release: Amendment to the Capital Markets Act to Improve Dividend Procedures and Corporate Disclosure Systems","type":"source"},{"url":"https://www.nts.go.kr/nts/cm/cntnts/cntntsView.do?cntntsId=7914\u0026mi=6478","title":"National Tax Service Income Tax Withholding Methods","type":"source"},{"url":"https://www.nts.go.kr/nts/cm/cntnts/cntntsView.do?cntntsId=7701\u0026mi=2289","title":"Overview of the National Tax Service’s Withholding Tax and Special Collection of Local Income Tax","type":"source"}],"images":[{"id":28,"url":"https://injoys.com/rails/active_storage/blobs/redirect/eyJfcmFpbHMiOnsiZGF0YSI6Mjg1LCJwdXIiOiJibG9iX2lkIn19--754b39cccde8aa46e528eee8b5d01d4a801e5eee/ai-80d90964.webp","is_representative":true,"generation_method":"ai_image","license":"ai_generated","mime_type":"image/webp","translations":{"ko":{"alt":"달력과 타임라인 위에 표시된 주식 증서, 체크 표시, 동전과 배당 흐름","caption":"배당기준일과 배당락일, 지급 흐름을 달력과 투자자 화면으로 보여준다.","description":null},"en":{"alt":"Calendar timeline with stock certificate, check mark, coin, and dividend flow to an investor","caption":"The illustration shows key dividend dates and the flow of payments from a company to an investor.","description":null},"ja":{"alt":"カレンダーのタイムラインに株券、チェックマーク、コイン、配当の流れを示す図","caption":"配当基準日や権利落ち日、支払いの流れをカレンダーで示している。","description":null},"es":{"alt":"Calendario con línea de tiempo, certificado de acciones, marca de verificación, moneda y flujo de dividendos","caption":"La ilustración muestra fechas clave de dividendos y el pago desde la empresa al inversor.","description":null},"id":{"alt":"Kalender dengan garis waktu, sertifikat saham, tanda centang, koin, dan alur dividen","caption":"Ilustrasi ini menunjukkan tanggal penting dividen dan aliran pembayaran dari perusahaan ke investor.","description":null},"pt":{"alt":"Calendário com linha do tempo, certificado de ações, marca de verificação, moeda e fluxo de dividendos","caption":"A ilustração mostra datas importantes de dividendos e o pagamento da empresa ao investidor.","description":null},"zh-hant":{"alt":"日曆時間軸上的股票憑證、勾號、硬幣與股利流向","caption":"這張圖以日曆呈現股利基準日、除息日與付款流程。","description":null}}},{"id":29,"url":"https://injoys.com/rails/active_storage/blobs/redirect/eyJfcmFpbHMiOnsiZGF0YSI6MjkxLCJwdXIiOiJibG9iX2lkIn19--d77f80b5f3654a27ce81e24a08da8402e9e170b5/ai-6701d472.webp","is_representative":false,"generation_method":"ai_image","license":"ai_generated","mime_type":"image/webp","translations":{"ko":{"alt":"회사와 주주 명부, 시계, 배당금을 받는 주주를 연결한 인포그래픽","caption":"배당 기준일에 명부에 오른 주주가 배당금을 받는 과정을 보여줍니다.","description":null},"en":{"alt":"Infographic linking a company, shareholder list, clock, and eligible dividend recipients","caption":"The graphic shows how shareholders on the record date become eligible for dividends.","description":null},"ja":{"alt":"会社、株主名簿、時計、配当を受け取る株主をつなぐインフォグラフィック","caption":"基準日に株主名簿へ載っている人が配当を受け取る流れを示しています。","description":null},"es":{"alt":"Infografía con empresa, lista de accionistas, reloj y accionistas aptos para cobrar dividendos","caption":"El gráfico muestra cómo los accionistas registrados en la fecha clave reciben dividendos.","description":null},"id":{"alt":"Infografik perusahaan, daftar pemegang saham, jam, dan penerima dividen yang memenuhi syarat","caption":"Grafik ini menunjukkan pemegang saham yang tercatat pada tanggal acuan berhak menerima dividen.","description":null},"pt":{"alt":"Infográfico com empresa, lista de acionistas, relógio e acionistas aptos a receber dividendos","caption":"O gráfico mostra como acionistas registrados na data-base ficam aptos a receber dividendos.","description":null},"zh-hant":{"alt":"連結公司、股東名冊、時鐘與符合領息資格股東的資訊圖","caption":"圖中說明在股息基準日列入名冊的股東可獲得股息。","description":null}}},{"id":31,"url":"https://injoys.com/rails/active_storage/blobs/redirect/eyJfcmFpbHMiOnsiZGF0YSI6MzA3LCJwdXIiOiJibG9iX2lkIn19--ed4245eda8bf81090de3b3c0725e1de55a4d837b/ChatGPT%20Image%202026%E1%84%82%E1%85%A7%E1%86%AB%207%E1%84%8B%E1%85%AF%E1%86%AF%204%E1%84%8B%E1%85%B5%E1%86%AF%20%E1%84%8B%E1%85%A9%E1%84%92%E1%85%AE%2002_48_19.webp","is_representative":false,"generation_method":"upload","mime_type":"image/webp","original_filename":"ChatGPT Image 2026년 7월 4일 오후 02_48_19.png","translations":{"ko":{"alt":"노트북과 스마트폰의 투자 차트, 표시된 달력, 동전 더미를 보며 배당 일정을 확인하는 남성","caption":"투자자가 배당기준일과 지급 시점을 확인하듯 달력, 차트, 동전이 놓인 책상에서 주식 정보를 살펴보고 있습니다.","description":null},"en":{"alt":"Man reviewing investment charts on a laptop and phone beside a marked calendar and stacks of coins","caption":"The scene shows an investor checking stock information with a calendar and coins that suggest dividend timing and payments.","description":null},"ja":{"alt":"ノートパソコンとスマートフォンの投資チャート、印付きカレンダー、硬貨を見ながら確認する男性","caption":"投資家が配当基準日や支払い時期を確認するように、カレンダーと硬貨のある机で株式情報を見ています。","description":null},"es":{"alt":"Hombre revisando gráficos de inversión en portátil y móvil junto a un calendario marcado y pilas de monedas","caption":"La escena muestra a un inversor consultando datos bursátiles con un calendario y monedas que sugieren fechas y pagos de dividendos.","description":null},"id":{"alt":"Pria meninjau grafik investasi di laptop dan ponsel di samping kalender bertanda dan tumpukan koin","caption":"Adegan ini memperlihatkan investor memeriksa informasi saham dengan kalender dan koin yang menggambarkan waktu serta pembayaran dividen.","description":null},"pt":{"alt":"Homem analisando gráficos de investimento no laptop e celular ao lado de calendário marcado e pilhas de moedas","caption":"A cena mostra um investidor consultando dados de ações com um calendário e moedas que sugerem prazos e pagamentos de dividendos.","description":null},"zh-hant":{"alt":"男子查看筆電與手機上的投資圖表，旁邊有標記日曆和成疊硬幣","caption":"畫面呈現投資者在有日曆與硬幣的桌前查看股票資訊，呼應股息基準日與支付時點。","description":null}}}],"published_at":"2026-07-04T14:56:22+09:00","updated_at":"2026-07-04T14:56:22+09:00","license":"cc_by","translation_status":"reviewed","available_locales":["ko","en","es","ja"],"data_locales":["ko","en","es","ja","id","pt","zh-hant"],"url":"https://injoys.com/en/articles/when-who-gets-stock-dividends"}