What does ex-dividend date mean?
The ex-dividend date is the first trading day when a buyer is no longer entitled to the upcoming dividend. Investors who buy on or after that date generally do not receive that payment.
Key points
- The share price often falls by roughly the dividend amount, although normal market moves still apply.
- The ex-dividend date is different from the record date and payment date.
- Buying only to receive a dividend does not create a guaranteed profit.
What to check next
Check the dividend amount, franking, ex-date, record date and payment date, then consider the company's longer-term earnings and dividend sustainability.
Reviewed by Sovest for plain-English financial education. For education and research only—not financial advice.