What is the ex-dividend date?
The ex-dividend date is a critical point in the dividend payment process that determines if a stock buyer will receive the next dividend. If you buy the stock on or after this date, you will not qualify for the upcoming dividend. Generally, the ex-dividend date is set one business day before the record date.
Key dates in the dividend process
Declaration date: This is when a company announces its plan to issue a dividend, including the amount and payment schedule.
Record date: On this date, the company reviews its shareholder records to determine who will receive the dividend. Only those registered by this date are eligible.
Ex-dividend date: Set one business day before the record date, this date determines eligibility for the dividend. For instance, if the record date is Friday, the ex-dividend date is Thursday. Purchases made on or after the ex-dividend date will not receive the dividend. The platform pays dividends on the ex-dividend date, whereas other brokers usually pay on the payable date.
Payable date: This is when the dividend is distributed to shareholders who were on record as of the record date.
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