Key terms to understand when investing in dividend-paying stocks:

Declaration Date - The date on which the board of directors of a company announces the amount of the next stock dividend and its ex-dividend date, record date, and payment date.

Ex-Dividend Date - The date on which the stock trades without a dividend. So if you buy the stock on or after the ex-dividend date, you will not receive the next dividend. If you sell the stock before the ex-dividend date, the buyer - not you - will receive the dividend. If you sell after the ex-dividend date, you - not the buyer - will receive the dividend.

Record Date - The date on which the company determines the list of shareholders who qualify for the stock dividend. To be a shareholder of record, you must own the stock at least one day before the ex-dividend date.

Payment Date - The date on which the stock dividend is paid to shareholders of record in the form of a dividend check or a credit to their account.

Adding dividend-paying stocks to your portfolio could be just the ticket for the steady growth of your bottom line.

Larry Potter
www.ATicketToWealth.com