Ex-dividend

What is Ex-Dividend?

Ex dividend is the status of a stock that has sold its upcoming dividend. This is marked by the ex-dividend date which is of great importance to the investors since it informs them if they qualify for the future dividend.

Key Concepts

Ex-Dividend Date: This is the last date that shares are traded with the right to the last declared dividend. If you purchase the stock on this date or after this date, you will not be entitled to the dividend – you buy the stock after it has gone ex-dividend.

Record Date: This is the date the organization has specified as the date for determining the shareholders of the company who are authorized to be paid dividend. The stock must be purchased on or before this date in order to be eligible.

Declaration Date: The date on which the management announces its intention of paying a dividend, its amount and the ex-dividend, record dates.

Payment Date: This is the day on which the company pays the dividend to the registered shareholders of the company who are entitled to the dividend.