The ex-dividend date is a cut-off point to determine whether investors in a stock are eligible for payment of a dividend. Anyone who purchases Shares on or after the ex-dividend date does not receive the dividend. The date a dividend is paid is usually some weeks after the ex-dividend date and even if an investor sells their Shares in the intervening period, they are still entitled to receive the dividend.
Usually, the value of a stock will reduce by the amount of the dividend on the ex-dividend date, although if there are other positive or negative factors affecting Sentiment towards the stock, these might be offset to a greater or lesser extent.
Contributed by: Ralph Windsor
Usually, the value of a stock will reduce by the amount of the dividend on the ex-dividend date, although if there are other positive or negative factors affecting Sentiment towards the stock, these might be offset to a greater or lesser extent.
External Links
Ex-Dividend Dates: When Are You Entitled to Dividendshttps://www.sec.gov/answers/dividen.htm
US SEC article about ex-dividend dates for US stocks.
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