Skip to content

Find a question

Can’t find what you’re looking for? Ask us a new question!

What does ex-dividend date mean?



Our response:

A dividend is part of a company’s profits that it pays to shareholders. The Board of Directors sets the amount. When a common or preferred share has an upcoming dividend, there are a few terms and dates you should be aware of:

  • Cum dividend: If you buy shares cum dividend, it means you will receive the dividend – this happens if you purchase the shares before the ex-dividend date.
  • Ex-dividend date: If you buy shares on or after the ex-dividend date, you will not receive the upcoming dividend. The ex-dividend date is two days before the record date.
  • Record date: You must officially own a share on the record date to receive the upcoming dividend.

If you buy a share ex-dividend, you are still entitled to receive dividends, just not the upcoming declared dividend. Learn more about how stocks work.

Can’t find what you’re looking for?

Copy the URL to share:

  Share the site: