Definition of Cum dividend:
Share price that includes the right to receive the next dividend. Opposite of ex dividend.
Before the announcement of year-end results for companies, dates are set out for closing the register for dividend payments and scrips. These dates will determine the qualification for dividends and scrips. A scrip is a document acknowledging a debt. Companies short on cash often pay scrip dividends instead of cash dividends.
(of stocks) with a dividend.
A stock is cum dividend, which means "with dividend," when a company has declared that there will be a dividend in the future but has not yet paid it out. A stock will trade cum dividend until the ex-dividend date. After that, the stock trades without its dividend rights. When the buyer receives the next dividend scheduled for distribution, the share is cum dividend.
How to use Cum dividend in a sentence?
- A stock is cum dividend, which means "with dividend," when a company has declared that there will be a dividend in the future but has not yet paid it out.
- In order to buy a share cum dividend, the buyer must complete the purchase before a certain point in the dividend period, called the record date.
- (When the stock is trading with the dividend the term cum dividend is used).
- Since information on dividends is publicly available, it is incorporated into the share price under the efficient market hypothesis.
Meaning of Cum dividend & Cum dividend Definition