What Are Ex-Dividend Dates?

What Are Ex-Dividend Dates?

What Are Ex-Dividend Dates?

"Ex-dividend" refers to a company's dividend execution date, or the date upon which the shareholder is set to receive a payout. To receive an upcoming dividend, an inventor must buy shares prior to the ex-dividend date, according to the U.S. Securities and Exchange Commission.

The SEC notes that a shareholder who sells shares on or after an ex-dividend date receives the dividend payment in lieu of the buyer receiving it. The ex-dividend date is normally set two business days before the record date, or the date on which the recorded owner of shares is guaranteed to receive payment on the payout date.