Ex-Dividend Date
The cutoff date to own shares and receive the next dividend.
Definition
The ex-dividend date is the first day on which buying the stock will not entitle the buyer to the next declared dividend. Investors must own the stock before the ex-dividend date to receive the payment. Stock prices typically drop by approximately the dividend amount on the ex-date.
Why It Matters
Understanding the ex-dividend date is essential for income investors and dividend capture strategies. Buying on or after the ex-date means waiting until the next quarter for a dividend payment.