What happens when a stock goes “ex-dividend” — and if a stock is sold, who gets the dividend?
When a stock goes ex-dividend, the company’s dividend* for that quarter will be paid to the stock’s owner on the previous day. Hence, whoever buys the stock on the ex-dividend day will NOT get the last quarter’s cash dividend. The key is who owned the stock on the day prior to the ex-dividend date, also known as the date of record.
When a stock goes ex-dividend, the company’s dividend* for that quarter will be paid to the stock’s owner on the previous day. Hence, whoever buys the stock on the ex-dividend day will NOT get the last quarter’s cash dividend. The key is who owned the stock on the day prior to the ex-dividend date, also known as the date of record. (And because stock trades generally take three days to settle, the seller of a stock that is sold within three business days before the date of record may still collect that quarter’s dividend.
