Assume that the board of directors of Coca‐Cola meets on May 26 and declares a quarterly dividend, payable on July 2. May 26 is called the declaration date. The board will declare a holder‐of‐record date—say, Thursday, June 12. The books close on this date, but Coke goes ex‐dividend on Tuesday, June 10. To receive this dividend, an investor must purchase the stock by Monday, June 9. The dividend will be mailed to the stockholders of record on the payment date, July 2.