Ex-Dividend Date
Earnings Season
The ex-dividend date is the first trading day on which a buyer of the stock is not entitled to an announced dividend.
Since US settlement moved to T+1 in May 2024, for regular cash dividends the ex-dividend date falls on the same business day as the record date. To receive the dividend you must buy the stock no later than the trading day before the ex-dividend date. On the ex-dividend date, all else equal, the stock usually starts trading from a reference price lower by about the dividend amount.
Example
If a $1 per-share dividend has been declared and the stock closed at $100 the day before the ex-date, the reference price on the ex-date is about $99. Ignoring taxes, the total value for an investor who receives the dividend does not change.
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