You are entitled to receive a dividend if the company in which you have invested distributes a dividend and you own shares of the company on the cum date. The dividend you receive is the net dividend, which has already been taxed at 15%.

You will receive a dividend if the net dividend amount you are entitled to exceeds $0.01.

### Understanding the Terms Related to Dividend Distribution:

1. Cum date or cumulative date is the date that determines an investor’s right to receive a dividend. If an investor holds the company’s shares on this date, they are entitled to the dividend.
2. Ex date or ex-dividend date is the date after which, if an investor buys shares, they are no longer entitled to the dividend. To receive the dividend, the investor must hold the shares before the ex date.
3. Rec date or recording date is the date when the company records shareholders who are eligible to receive the dividend.
4. Pay date or payment date is the date when the company pays the dividend to eligible shareholders. You may receive the dividend 1-6 days later than the payment date specified on the US stock exchange due to operational processes that need to be completed to ensure you receive the correct dividend.

Example of Dividend Calculation:

AAPL stock issues a dividend of $1 per share.
On the cum date, you hold 20.55 shares.

You are entitled to receive a dividend of:

$1.00 x 20.55 shares = $20.55, which after a 15% tax deduction becomes:

$20.55 – ($20.55 x 15%) = $17.46 in dividends.