Shareholder of record
The shareholder of record is the one who receives the dividend payment.
Dividends are paid to the owner recorded on the books of the stock registrar. When a stock is traded, the new ownership is recorded three days after the trade date. Hence, dividends are paid with an "x" date, the date after which the buyer will no longer get the dividend, usually indicated with an x footnote next to the dividend in the newspaper listings.
Related Fool Articles
Recent Mentions on Fool.com
- Why Warren Buffett Is Probably Not Interested in Apple Inc. Stock
- Closed-End Funds: Investing Essentials
- Realty Income Corp's Business Model Explained in 6 Easy Steps
- This Warren Buffett Stock Pick Is a Dividend Investor's Dream
- Samsung Is Losing Market Share to Chinese Competitors
- Value: Investing Essentials