Ex-Dividend Date
A stock’s ex-dividend date is the first day an owner can sell the stock without losing the rights to its upcoming dividend. Obviously, it’s also the first day a buyer who purchases the stock will not receive that same dividend. A good way to remember how the ex-dividend date works is to think of it as a synonym for “without dividend.” A stock trading on or after its ex-dividend date is trading without its dividend.
People seem to complicate the definition of the ex-dividend date by muddling their explanations with unnecessary terms like the declaration date (the day a dividend is announced), payment date (the date the dividend is actually paid), and the record date (worthless to shareholders). If you want to know the definition of the ex-dividend date, just read the first paragraph on this page. That’s everything you need to know.
A stock’s ex-dividend date is also commonly referred to as its ex-date.
For a rundown of stocks trading ex-dividend soon, check out the latest posts in my “Ex-Date” Category Archive.
