Definition of Ex-dividend date:
The date of the first day of a stocks ex-dividend period. If a stock is not owned by an investor prior to the ex-dividend date, then the investor will not be allowed to participate in receiving a dividend payout. Can also be referred to as the reinvestment date.
The ex-dividend date, or ex-date for short, is one of four stages that companies go through when they pay dividends to their shareholders. The ex-dividend date is important because it determines whether the buyer of a stock will be entitled to receive its upcoming dividend.
To understand the ex-dividend date, we need to understand the four stages companies go through when they pay dividends to their shareholders.
How to use Ex-dividend date in a sentence?
- These are the declaration date, the ex-dividend date, the record-date, and the payable date.
- There are four dates to know when it comes to companies' dividends.
- On the ex-dividend date, stock prices typically decline by the amount of the dividend.
- To receive the upcoming dividend, shareholders must have bought the stock before the ex-dividend date.
Meaning of Ex-dividend date & Ex-dividend date Definition