How long do you have to hold a stock to get the dividend?

You must be the owner of record by the ex-dividend date to receive the next dividend payment. The way to know is to make sure to buy the stock at least one market day before the ex-dividend date.

How often does a dividend pay?

This varies by company, but the vast majority of dividend-paying U.S. stocks pay their regular dividends quarterly. A few companies pay dividends monthly; these are mostly REITs. Some companies pay dividends once or twice per year, but this is rare. You can typically find this information for a company on its investor relations website.

Are dividends paid monthly or quarterly?

The vast majority of companies pay a quarterly dividend, with monthly payments the second-most popular schedule but still less common (almost always done by real estate investment trusts). Even rarer, some companies pay a dividend once or twice per year.

How Often Are Dividends Paid & When Do You Get Them?

Knowing when, and how, you'll get paid is important.

By Jason Hall – Updated May 18, 2026 at 9:52 AM EST | Fact-checked by Margo Winton Parodi

Key Points

Most U.S. companies pay dividends quarterly; few, like Realty Income, pay monthly.
Understand key dates: Own shares before the ex-dividend date to receive dividends.
Dividends are usually (but not always) paid in cash, directly deposited into your brokerage account.

If you're investing in dividend stocks, understanding payment timing and mechanics is essential for managing your income expectations and portfolio strategy. Here's what you need to know about when and how you'll get paid.

A graphic answering questions about dividends, including: how they're paid, how often they're paid, and how much they pay. — Image source: The Motley Fool.

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How often companies pay dividends

Most U.S. dividend-paying companies issue quarterly payments, but it's not the only way companies pay their shareholders.

Quarterly dividends: The vast majority of U.S. dividend stocks pay quarterly, or four times per year. The board of directors determines the dividend policy and schedule, but quarterly payments have become standard.
Monthly dividends: A small number of companies pay dividends every month. The most notable example of this is Realty Income (O -0.34%). The company has marketed itself as "the monthly dividend company" and has paid monthly dividends since its founding in 1969. Monthly payers are most common among certain real estate investment trusts (REITs).
Special dividends: These are non-regular payouts, generally occurring when a company has a very good year or another financial windfall (like selling off an asset) that leaves it with way more cash than it needs. Costco Wholesale (NYSE:COST) is a notable example, having paid substantial special dividends to investors every few years over the past decade.

Critical dates every dividend investor needs to know

There are three important dates to understand if you invest in any dividend stocks:

Ex-dividend date: The first day a stock trades without the upcoming dividend included in its price. If you buy shares on or after this date, you won't receive the next dividend payment. To be entitled to the dividend, you must own shares before the ex-dividend date.
Record date: The date you must be the recorded owner of shares to receive the dividend. Thanks to T+1 settlement (implemented in May 2024), trades now settle the business day after the transaction. This means the ex-dividend date and record date are typically the same day, unless the record date falls on a non-business day.
Payment date: When the company actually distributes the dividend to shareholders. Depending on your broker, the cash may appear in your account on this date or a day or two later. Payment dates can range from a few days to over a month after the dividend is declared.

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Real-world example: How dividend timing works

Let's look at Apple's (AAPL +1.38%) dividend from August 2025 to see how these dates work in practice.

On July 31, 2025, Apple declared a dividend of $0.25 per share with a payment date of Aug. 14 to shareholders of record as of Aug. 11.

Here's what that means: To receive the Aug. 14 dividend payment, you needed to own or buy Apple shares before Aug. 11 (the ex-dividend and record date). If you bought shares on or after Aug. 11, you missed that dividend payment.

Under the current T+1 settlement system, when you buy stock on a given day, you become the owner of record the next business day. Before May 2024, it took two business days for trades to settle (T+2).

How are dividends paid?

There are several ways investors can receive dividend payments.

Cash payments

In the vast majority of cases, companies pay dividends in cash. The money flows from the company to your brokerage account. The cash is deposited into your account on or shortly after the payment date. If you need that cash for living expenses, factor in an extra few days to transfer it from your brokerage to your bank account.

Stock dividends

Some companies pay dividends in additional shares rather than cash. This is rare but does happen. Companies typically make it clear when dividends aren't paid in cash. If you receive a stock dividend but want actual cash, you'll need to sell those shares and wait for the trade to settle (which generally takes one business day) before your broker will allow you to withdraw the proceeds.

Dividend renvestment (DRIP) plans

While some companies offer dividend reinvestment plans that bypass brokerages, the widespread availability of zero-commission trading has made these programs less attractive. Most investors find managing dividends through their brokerage simpler and more convenient.

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Planning around dividend payments

Understanding dividend timing helps with several practical considerations.

Income budgeting: If you rely on dividends for living expenses, know that there's typically a lag between the payment date and when you can move the cash from your brokerage to your bank account. Build this delay into your budget.
Tax planning: You owe taxes on dividends in the year you receive them, even if you reinvest the dividends automatically. The payment date determines which tax year the dividend falls into.
Portfolio management: Tracking ex-dividend dates helps you understand why a stock's price might drop slightly on that date -- the market adjusts for the dividend that's no longer attached to new purchases.

The bottom line

Most dividend-paying companies follow a quarterly schedule, with payments arriving three to four times per year. The key to receiving dividends is owning shares before the ex-dividend date, which now aligns with the record date thanks to T+1 settlement.

Whether you're building a dividend portfolio for growth or relying on dividend income, understanding these mechanics helps you plan purchases, manage cash flow, and set realistic expectations about when money will arrive in your account.

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FAQ

Dividend stocks FAQ

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About the Author

Jason Hall is a contributing Motley Fool stock market analyst with more than a decade of experience writing about dividend stocks and long-term investing. He has been with the company since 2012 and previously spent over 10 years in technical sales in the printing and information services industry. Jason also founded and operated a small food manufacturing business.

TMFVelvetHammer

@thesmattering

Jason Hall has positions in Realty Income. The Motley Fool has positions in and recommends Apple, Costco Wholesale, and Realty Income. The Motley Fool has a disclosure policy.

Monthly dividends: A small number of companies pay dividends every month. The most notable example of this is Realty Income (O -0.34%). The company has marketed itself as "the monthly dividend company" and has paid monthly dividends since its founding in 1969. Monthly payers are most common among certain real estate investment trusts (REITs).

Special dividends: These are non-regular payouts, generally occurring when a company has a very good year or another financial windfall (like selling off an asset) that leaves it with way more cash than it needs. Costco Wholesale (NYSE:COST) is a notable example, having paid substantial special dividends to investors every few years over the past decade.

Critical dates every dividend investor needs to know

There are three important dates to understand if you invest in any dividend stocks:

Ex-dividend date: The first day a stock trades without the upcoming dividend included in its price. If you buy shares on or after this date, you won't receive the next dividend payment. To be entitled to the dividend, you must own shares before the ex-dividend date.

Record date: The date you must be the recorded owner of shares to receive the dividend. Thanks to T+1 settlement (implemented in May 2024), trades now settle the business day after the transaction. This means the ex-dividend date and record date are typically the same day, unless the record date falls on a non-business day.

Payment date: When the company actually distributes the dividend to shareholders. Depending on your broker, the cash may appear in your account on this date or a day or two later. Payment dates can range from a few days to over a month after the dividend is declared.

How Often Are Dividends Paid on Stocks?

Knowing when, and how, you'll get paid is important.

Key Points

How often companies pay dividends

Critical dates every dividend investor needs to know

Real-world example: How dividend timing works