Investing in dividend stocks is a great way to grow your wealth.

“Most dividends are cash dividends, which are cash payments made on a per-share basis to investors. For instance, if a company pays a dividend of 20 cents per share, an investor with 100 shares would receive $20 in cash. Stock dividends are a percentage increase in the number of shares owned. If an investor owns 100 shares and the company issues a 10% stock dividend, that investor will have 110 shares after the dividend,” as noted by US News & World Report.

Along the way, not only do you stand to benefit from stock price appreciation, you can sit back and collect dividends.  Look at Lowe’s Companies, for example.

Lowe’s Companies (LOW) just declared a quarterly cash dividend of eighty cents ($0.80) per share, payable August 4, 2021, to shareholders of record as of July 21, 2021. Based on its confidence in the company’s continued business momentum, its growth trajectory and strong cash flow generation, the board of directors approved a 33 percent increase in the quarterly cash dividend. Lowe’s has paid a cash dividend every quarter since going public in 1961, and it has increased the dividend for more than 25 consecutive years.

For you to collect the 80-cent per share dividend payment on August 4, 2021, you need to be a shareholder of record as of July 21, 2021.

Other times, a company may pay out a special dividend. 

These are usually one-time payments you can receive in addition to a regular quarterly dividend.  T. Rowe Price (TROW) for example just declared a special cash dividend of $3 per share, payable July 7, 2021 to shareholders of record on June 25, 2021.

That means you needed to be a shareholder of record as of June 25 to receive the payout.

William J. Stromberg, the company’s chair and chief executive officer, commented: “This special cash dividend is an efficient return of capital to our stockholders and reflects the healthy cash position on our balance sheet. After the special dividend payment, the company’s balance sheet will remain very strong, with ample liquidity to continue to execute on our business strategy.”