Only the shares you hold on or before the dividend qualification date are considered for that dividend payment.
Here’s the precise breakdown:
1. What the qualification date means
The dividend qualification date (also called record date) is the cut-off used by the registrar to determine who is eligible to receive dividends.
If your name (or your CSCS account via your broker) appears in the company’s register on that date → you qualify.
If not → you don’t get that dividend.
2. What happens if you buy more shares after that date
Any additional shares purchased after the qualification date:
❌ Will NOT be included in the current dividend payment
✅ Will be eligible for future dividends only
3. Important practical detail (very critical in Nigeria – NGX)
Because of settlement timelines (T+2 on the NGX):
You must buy shares at least 2 business days before the qualification date
If you buy on or very close to the qualification date, the transaction may not settle in time → you miss the dividend
4. Simple example
Qualification date: June 10
You owned: 1,000 shares before June 10
You bought: 500 shares on June 11
👉 Dividend payment will be based on 1,000 shares only, not 1,500.
Bottom line
Registrars calculate dividends based strictly on your holdings as of the qualification (record) date—not what you buy afterward.