Ex-dividend date = The date after which new buyers are not entitled to the dividend

What is the ex-dividend date

The ex-dividend date is the date from which newly purchased shares no longer qualify for the next dividend payment. If an investor buys shares on or after this date, they will not be entitled to the current dividend — only those who owned the shares on the day before the ex-dividend date will receive it.

How the ex-dividend date works

• It is set by the exchange where the stock is traded.
• It usually occurs one business day before the so-called record date (the day on which the company determines the list of shareholders entitled to the dividend).
• On the ex-dividend date, the stock price often drops by roughly the amount of the dividend because new buyers are no longer entitled to it.

Why the ex-dividend date matters for investors

• It allows investors to plan purchases or sales according to the dividend calendar.
• It helps dividend investors maximize their returns.
• Trading around this date can take advantage of short-term price movements.

Ex-dividend date on the Stonkee platform

On Stonkee, users can monitor ex-dividend dates for all stocks in their portfolio and their watchlist. AI alerts you to upcoming dates and links them with information about the dividend yield and fair price of the stock.

Summary

The ex-dividend date is a key date for every dividend-focused investor. It determines who receives the next dividend and influences short-term price movements of the stock.