What Is an Ex-Dividend?

The term “ex-dividend” refers to a stock that is now trading without the benefit of the next dividend payment. The ex-dividend date, often known as the “ex-date,” is the day on which a stock begins trading without the value of its upcoming dividend payment.
The ex-dividend date for a stock is usually one business day before the record date, which means that an investor who purchases the shares after the ex-dividend date will not be entitled for the announced dividend. Rather, whoever owned the shares the day before the ex-dividend date receives the dividend payout.

  • Ex-dividend is when a company’s dividend allocations have been specified.

  • The ex-dividend date of a stock is the day on which the stock begins trading without the subsequent dividend value.

  • Investors who purchased the stock before the ex-dividend date are entitled to the next dividend payment while those who purchased the stock on the ex-dividend date, or after, are not.

  • The ex-dividend date occurs before the record date because a stock trade is settled “T+1” meaning that the record of that transaction isn’t settled for one business day.