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StockCram is not a broker-dealer, investment adviser, or financial institution. All content is for educational and informational purposes only and should not be construed as personalized investment advice. Consult a qualified financial professional before making investment decisions. Past performance does not guarantee future results.Simple Definition
The cutoff date to own a stock and receive its upcoming dividend.
Why It Matters
If you want a dividend, you must own the stock BEFORE the ex-dividend date. Buy on or after, and you won't get the payment. The stock typically drops by roughly the dividend amount on the ex-date since buyers no longer get that dividend. This is why buying right before ex-date isn't a free money hack.
Key Points
- Buy before ex-date = you get the dividend; buy on or after = you don't
- Stock price typically drops by the dividend amount on ex-date
- Ex-date is usually 1-2 business days before the record date (when the company checks its shareholder list)
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What Is a Dividend?
Get a complete explanation with examples, key takeaways, and a quiz to test your knowledge.
Related Terms
Common Questions
The cutoff date to own a stock and receive its upcoming dividend. If you want a dividend, you must own the stock BEFORE the ex-dividend date. Buy on or after, and you won't get the payment.
If you want a dividend, you must own the stock BEFORE the ex-dividend date. Buy on or after, and you won't get the payment. The stock typically drops by roughly the dividend amount on the ex-date since buyers no longer get that dividend. This is why buying right before ex-date isn't a free money hack.
Buy before ex-date = you get the dividend; buy on or after = you don't
Stock price typically drops by the dividend amount on ex-date
Ex-date is usually 1-2 business days before the record date (when the company checks its shareholder list)