Glossary Background

Ex-Dividend Date

The ex-dividend date is the trading day when a stock’s new buyer no longer qualifies for the announced upcoming dividend. Traders say a stock has 'gone ex-dividend' on or after this date. Typically ex-date and record date will be same as long as record date is on a working day. Record date is when a company identifies shareholders eligible for dividends. If a stock is bought ex-dividend, the seller, not the buyer, receives the dividend. This date impacts trading decisions, as it signals the cutoff for dividend entitlement, often affecting stock price momentarily.