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The Ex-Dividend Date - When to buy in order to get paid

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Everything you need to know about the Ex-Div Date

Perhaps one of the most confusing concepts to beginning dividend investors is the 'ex-div' date of a stock. In a nutshell, this is the date you must own the stock in order to receive the next dividend. The catch is that this date is never the same as the actual dividend date itself. Let's explore why.

How the Ex-Dividend Date Works

What is the Ex-Div Date?

Many articles you read will talk about settlement dates, Record dates, Distribution Dates etc..

For Purposes of recieving a dividend from a share of stock or a mutual fund there is only one thing you need to know:

You must buy the stock Before the Ex-Div date.

Why? Because the Ex-Div date is the day the stock begins trading 'EXcept the DIVidend'

On the ex-div date the stock virtually always opens lower by exactly the amount of the dividend.

This is because no-one who buys the stock that day can recieve the dividend.

A Deeper Look at the Ex Div Date

Dig a Little Deeper on Dividend Investing

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Dig Deeper on the Ex-Div Date

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