Ex-Dividend Date
The date on or after which a buyer of a security is not entitled to receive the next declared dividend; shares purchased on or after this date trade without the right to the upcoming dividend.
Full Definition
The ex-dividend date is determined by the stock exchange and is set one business day before the record date under the T+1 settlement convention adopted in the US in May 2024. An investor who purchases shares on or after the ex-dividend date will not be a shareholder of record on the record date and therefore will not receive the declared dividend. The seller, rather than the buyer, will receive the dividend in such cases. Editors working on dividend announcements must list the ex-dividend date, record date, and payment date in the correct sequence, as errors here can mislead investors. The preferred hyphenated form is 'ex-dividend date.'
Usage
Usage note: Always hyphenate: 'ex-dividend date.' 'Ex-date' is acceptable in informal or technical shorthand but should be expanded in formal investor communications.
In Context
- "The ex-dividend date for the special cash dividend is April 4, 2025." — Dividend announcement press release
- "Investors who purchased shares after the ex-dividend date were not entitled to the distribution." — Investor FAQ