When it comes to investing in stocks for dividends, it's important to understand the dividend schedule. For Hewlett Packard, one of the leading technology companies, there are three key dates that every investor should be aware of: the date of declaration, date of record, and date of payment.
Date of Declaration
The date of declaration is when Hewlett Packard's board of directors announces their intention to pay a cash dividend. This is a significant moment as the company incurs a liability on their books to reflect the proposed dividend to shareholders. Along with the date of declaration, the board of directors also announces the date of record and date of payment.
Date of Record (and Ex-Dividend Date)
The date of record is crucial as it determines which shareholders are entitled to receive the dividend. Hewlett Packard maintains a record of all their shareholders, unless the shares are held in street-name, meaning they are owned through a brokerage account. In such cases, the company pays the broker, who then deposits the cash dividend into the shareholder's account.
The ex-dividend date is two days before the date of record. It is an important date for investors as it determines whether they are entitled to the dividend. Shareholders who own the stock before the ex-dividend date will receive the dividend, while those who buy the stock on or after the ex-dividend date will not. As a result, the value of the stock tends to decline on the ex-dividend date as it trades without the right to the dividend.
Date of Payment
The date of payment is the final date to remember for dividends. It is when shareholders actually receive the cash dividend from Hewlett Packard.
Analyzing hewlett-packard (hpe) stock price: trends, factors, and analyst targetsIt's important to note that sometimes companies may pay special dividends, especially if they have excess cash on their books. These special dividends are additional cash payments distributed to shareholders. It's crucial for investors to pay attention to the three key dates mentioned above to ensure they don't miss out on any potential cash dividends.
When investing in dividend-paying stocks like Hewlett Packard, it's essential to have a diversified portfolio that includes both dividend and growth-oriented companies. Dividend-paying companies are often mature companies that cannot reinvest all their profits into the business, so they distribute cash to shareholders as dividends. On the other hand, growth-oriented companies reinvest their profits back into the business to generate future growth and may not pay dividends.
Frequently Asked Questions
- What are the three dividend dates for Hewlett Packard?
- What happens on the ex-dividend date?
- Who is entitled to receive the dividend?
- When do shareholders receive the cash dividend?
The three dividend dates for Hewlett Packard are the date of declaration, date of record, and date of payment.
On the ex-dividend date, the stock price typically declines by the amount of the dividend, as the stock trades without the right to the dividend.
Shareholders who own the stock before the ex-dividend date are entitled to receive the dividend, while those who buy the stock on or after the ex-dividend date will not receive it.
Hpe careers: professional growth opportunities at hewlett packard enterpriseShareholders receive the cash dividend on the date of payment.
Understanding the Hewlett Packard dividend schedule is crucial for investors looking to maximize their returns. By keeping track of the date of declaration, date of record, and date of payment, investors can ensure they receive the cash dividends they deserve. However, it's important to remember that dividend-paying companies are usually mature companies, and a well-diversified portfolio should include both dividend and growth-oriented companies.
For any further financial questions or assistance, feel free to contact ACap Asset Management at [email protected] or 818-272-851ACap Asset Management is a fee-only investment management firm specializing in helping doctors and healthcare professionals make sound financial decisions. Visit their website at www.acapam.com for more information.