Ex-Dividend

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DEFINITION of 'Ex-Dividend'

A classification of trading shares when a declared dividend belongs to the seller rather than the buyer. A stock will be given ex-dividend status if a person has been confirmed by the company to receive the dividend payment.

BREAKING DOWN 'Ex-Dividend'

A stock trades ex-dividend on or after the ex-dividend date (ex-date). At this point, the person who owns the security on the ex-dividend date will be awarded the payment, regardless of who currently holds the stock. After the ex-date has been declared, the stock will usually drop in price by the amount of the expected dividend.

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RELATED FAQS
  1. How can the price of a stock change on the ex-dividend date?

    An investor looking for a dividend-paying stock has two important dates to consider when investing in a company. The first ... Read Full Answer >>
  2. How is the ex-dividend date for a dividend on a stock determined?

    The ex-dividend date is actually determined by the appropriate stock exchange, not by the company paying the dividend. The ... Read Full Answer >>
  3. How can I find out the ex-dividend date for a stock's dividend?

    Existing shareholders of a company's stock receive notification, typically by mail, when the company declares a dividend ... Read Full Answer >>
  4. Why should I pay attention to a dividend's ex-dividend date?

    Investors should pay attention to the ex-dividend date for a stock because it determines which stockholders qualify to receive ... Read Full Answer >>
  5. In what situations must taxes be paid on a stock dividend?

    Stock dividends are taxable income unless the stocks paying the dividend are held in a qualified retirement plan, such as ... Read Full Answer >>
  6. Does an ETF pay out the full dividend that comes with the stocks held in that ETF?

    Exchange-traded funds (ETFs) pay out the full dividend that comes with the stocks held within the funds. To do this, most ... Read Full Answer >>
  7. What is the difference between record date and payable date?

    Record and payable dates are important to keep track of because they relate to dividends earned and paid out to investors ... Read Full Answer >>
  8. Is it a good idea for a beginning investor to arbitrage the dividend calendar?

    Because of the complexity of the trading strategy that seeks to arbitrage the dividend calendar and the level of risk involved, ... Read Full Answer >>
  9. How can I find out what date(s) I am supposed to be entitled to ex-dividends?

    The first date of importance when it comes to dividends is the declaration date. This is the date on which a company makes ... Read Full Answer >>
  10. If a company moves its dividend record date forward, does the ex-dividend date change ...

    When a dividend is declared, there are three important dates for investors: the dividend payable date, the dividend date ... Read Full Answer >>
  11. I would like to invest in a dividend-paying stock. How can I find out which stocks ...

    There are several accessible sources to help investors identify dividend-paying stocks. Here are a few we can recommend:   Generally, ... Read Full Answer >>
  12. If I sell my shares before the ex-dividend date will I still get the dividend?

    If you sell before the ex-dividend date you will not receive a dividend from the company. The ex-dividend date is the date ... Read Full Answer >>
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