Are you a fan of dividend investing?

Owning the big five Canadian banking stocks can reward you with handsome dividends every quarter. Here are the dividend dates of Canadian banks for the year 2022.

What is a dividend?

Dividends are a distribution of some of the company’s earnings to eligible shareholders. It is determined by the board of directors of the company. It is a small reward to the investors who have trusted their money into these publicly listed companies, and it comes originally from the profits.

When it comes to Canadian stocks, Canadian banks are often the best dividend payers.

Dividend Dates – Types of Dates

When it comes to dividends, you need to understand the difference between record date, ex-dividend date, payment date etc. Here we go.

Announcement Date: As the name indicates, announcement date is the date on which dividends are declared. It is also called the declaration date. It happens once the dividends are approved by the board of directors of the company.

Ex-dividend Date: The date on which dividend eligibility expires is called the Ex-dividend date. For example, if the ex-dividend date of a stock is Jan 4, 2022, then all stock holders who possess the stock as of Jan 3, 2022, are eligible for dividends. Anyone who purchases the stock on the ex-dividend date or after will not be eligible for the upcoming dividend.

Record Date: It is the cut-off date established by the company to determine which shareholders are eligible for the dividends.

Payment Date: This is the day on which the dividends are paid by the company to the shareholders’ investment account.

Let’s cut to the chase. Here are the important dividend dates for the year 2022.