What is the ex-dividend date?
The ex-dividend date is a specific date, occurring after the dividend has been declared, after which buyers are no longer entitled to receive the last declared dividend. This is known as going ‘ex-dividend’ and before this date the shares are said to be ‘cum-dividend’. If you buy shares before the ex-dividend date, you are entitled to the recently declared dividend. If you buy shares on or after that date, the previous owner of the shares (and not you) is entitled to the dividend.
A date prior to the dividend record date, based on industry regulations, necessary to allow for the settlement of securities traded through a broker by the dividend record date. Stock purchased from a broker after the ex-dividend date is not entitled to the succeeding dividend. Generally, the ex-dividend date is two business days prior to the dividend record date.
The ex-dividend date is a specific date, occurring after the dividend has been announced, after which buyers of the shares which have gone ex-dividend are no longer entitled to receive that particular dividend. This is known as going “ex-dividend”; before this date, the shares are said to be “cum-dividend”. If you buy shares before the ex-dividend date, you are entitled to the recently declared dividend. If you buy shares on or after that date, the previous owner of the shares (and not you) is entitled to the dividend. When a share goes ex-dividend you may see the price of that share fall by roughly the same amount as the dividend. This is because the stock market adjusts the price to reflect the fact that a buyer is no longer entitled to the dividend. Bear in mind though that other market factors may drive the price lower than the amount of the dividend or, alternatively, drive the share price up to such an extent that the fall caused by going ex-dividend is reduced or eliminated.
The ex-dividend date is a specific date, occurring after the dividend has been declared, after which buyers are no longer entitled to receive the last declared dividend. This is known as going ‘ex-dividend’ and before this date the shares are said to be ‘cum-dividend’. If you buy shares before the ex-dividend date, you are entitled to the recently declared dividend. If you buy shares on or after that date, the previous owner of the shares (and not you) is entitled to the dividend. The ex-dividend date for the latest dividend can be found in the financial calendar.
The ex-dividend date is a specific date, occurring after the dividend has been announced, after which buyers are no longer entitled to receive the last declared dividend. This is known as going ‘ex-dividend’ and before this date the shares are said to be ‘cum-dividend’. If you buy shares before the ex-dividend date, you are entitled to the recently declared dividend. If you purchase shares on or after that date, the previous owner of the shares is entitled to the dividend. According to Australian Stock Exchange Listing Rules, shares are quoted on an ex-dividend basis four clear business days before the ‘record date’. The ex-dividend date for the latest dividend can be found on the Investor calendar.
