What is Ex-Dividend Date?
The cut-off date that decides who gets the next dividend — buy on or after it and the seller, not you, receives the payment.
Educational — not investment advice
To receive a declared dividend you must own the shares before the ex-dividend date. Buy on the ex-date or later and the dividend goes to the previous owner. It exists to settle who is entitled as ownership changes hands.
On the ex-date, a stock’s price typically drops by roughly the dividend amount, because that cash is leaving the company.
The trap most people miss
Chasing dividends by buying just before the ex-date and selling after — "dividend capture" — usually doesn’t work: the price drop offsets the dividend, and you may owe tax on the payment plus trading costs. The dividend isn’t free money.
Frequently asked about Ex-Dividend Date
When do I need to buy to get the dividend?
Before the ex-dividend date. Buying on or after it means the seller receives that dividend, not you.
Why does the price drop on the ex-date?
Because the dividend cash is leaving the company, the share price typically falls by roughly the dividend amount that morning.
Related terms
In Tradune: follow the dividend calendar for your holdings.
Track what you actually own
Tradune puts every holding in one place — no brokerage login — and measures your return against a buy-and-hold SPY twin funded on your own dates.
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This definition is for educational purposes only and is not investment, tax, or financial advice. Concepts are explained in general terms; how they apply to your situation can differ. Always do your own research.