As an investor in the stock market, there are many dates to take note of. First and foremost, we need to know the dates relating to the stock we hold. Next, we also need to take note of periodic market updates such as the Consumer Price Index, an indication of inflation.
Stock-related dates:
This is mainly for dividend stocks. Each stock/company has their own dates for dividends, and for each stock, there are 4 important dates every investor must know.
1) Dividend declaration date
This is the date which the board announces and approves a dividend payout to shareholders. This will include the size/amount of each dividend to be issued, and the record and payment date.
2) Ex-dividend date
This is the first day a stock trades without the dividend. This date is set by the stock exchanges on which the stock is traded.
3) Record date
This is the day that the company records which investors are to be paid a dividend. Those that hold shares of the company on this day will receive a dividend.
4) Payment date
This is the date which dividends are paid out to shareholders.
Market updates:
1) Consumer Price Index
The CPI is an indicator of inflation and is important in making key financial decisions, such as interest rate policy and hedging decisions. Inflation affects stock markets, even though in theory, companies' revenues and earnings should grow at the same rate as inflation. The most straightforward way to understand how inflation affects stock markets is through companies' financial statements. With inflation, prices are higher, leading to overstated financials. If you invest in bonds, your fixed income each year will thus have a lower value with increased inflation, vice versa.
2) Purchasing Managers' Index
Note that this is for the US economy. The PMI is generally taken to be an accurate and timely indicator of business conditions. The PMI is based on monthly surveys from supply chain managers in the manufacturing sector.
3) Producer Price Index
The PPI is an indicator of changes in price of goods manufactured. It is used as an indicator of inflation, like the CPI, but from the sellers' point of view. For example, when the PPI is increasing, chances are that there will be inflation, because of the increase in price of goods manufactured. This is not used as much as the CPI.
Overall, there are many key dates to know, this list is non-exhaustive. For more information, do read up more on the financial markets and key events to look out for.
