Chapter 3 of 6
Ex-dividend dates & the calendar
Timing decides who gets paid. One date — the ex-dividend date — is the one to remember.
To receive a dividend you must own the stock before its ex-dividend date. Buy on or after it and the seller keeps that payment. The cash itself arrives later, on the pay date. You don't need to trade around these dates — but knowing them explains why a price often dips by roughly the dividend on the ex-date.
Key terms
- Ex-dividend date
- The cut-off day: you must already own the stock before it to receive the next dividend. Buy on or after, and the seller keeps that payment.
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