Glossary · Defined term
Ex-dividend date
The ex-dividend date is the first day a stock trades without the right to receive its declared dividend. Definition plus a worked example.
Last updated Oct 2, 2026
What it means
The ex-dividend date is the first day a stock trades without the right to receive its declared dividend. Under the current T+1 settlement cycle, the ex-dividend date is typically one business day before the record date, and you must buy the shares before the ex-dividend date to collect the payment. On the ex-dividend date the share price usually drops by roughly the dividend amount, since buyers after that point are not entitled to the cash. The date matters only for the declared dividend; it does not affect ownership or voting rights. Investors who buy on or after the ex-dividend date simply wait for the next payout.
An example
For illustration, a company declares a $1 dividend with an ex-dividend date of Monday. An investor who buys on Friday receives the $1; one who buys on Monday does not, even though both own the stock when the dividend is paid weeks later. The cutoff is the ex-dividend date, not the payment date.