Ex-Dividend Date

The ex-dividend date is the key cutoff date in the stock dividend process. If you buy a stock on or after this date, you won't receive the upcoming dividend; the seller retains the right to it. To receive the dividend, you must purchase the stock before the ex-dividend date. Typically, the stock price drops by roughly the dividend amount on or after this date, reflecting the payout. Essentially, the ex-dividend date helps clarify who is eligible for the dividend and ensures a fair transition of rights from sellers to new shareholders.