Ex-Dividend Date

What is the Ex-Dividend Date?

The ex-dividend date is the critical cutoff for dividend eligibility. If you buy a stock on or after the ex-date, you won't receive the upcoming dividend payment.

Important Dividend Dates

The Rule

• Buy BEFORE ex-date = You get the dividend
• Buy ON or AFTER ex-date = You don't get the dividend
• Under T+1 settlement, the ex-date for an ordinary cash dividend is generally the record date if it is a business day; if the record date is not a business day, it is generally the preceding business day
• Large or special distributions can follow different rules; check the announced ex-date

Price Adjustment

On the ex-dividend date, the stock price typically drops by approximately the dividend amount (since new buyers don't get the dividend).

Example:

• Stock closes at $50
• Dividend: $1
• The theoretical ex-dividend adjustment is to $49; actual trading prices also reflect other market movements