Ex-Dividend Date

Category: finance

The date on which a stock begins trading without the value of the next dividend payment.

To receive a declared dividend, you must own the stock *before* the ex-dividend date. If you buy on or after this date, the previous owner receives the payment. It is a critical timing mechanism for dividend-capture investment strategies.

Common Examples

• The stock price typically drops by the approximate dividend amount on the ex-dividend date, reflecting the payout to existing shareholders.
• We adjusted our trade execution timing to ensure our clients held the position prior to the critical ex-dividend date.