Quick Definition

Ex-dividend refers to the period after which a declared dividend belongs to the seller rather than the buyer of a stock.

Examples

• 1If a company declares a dividend payable on September 15th with an ex-dividend date of September 1st, any stock purchased on or after September 1st will not qualify for the dividend.
• 2A shareholder decides to sell their shares on the ex-dividend date and still receives the dividend, as they owned the shares before the ex-dividend date.
• 3An investor looking to capture dividends from multiple stocks will track ex-dividend dates to ensure they purchase the stocks in time to qualify for the next dividend payment.

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