Ex-Dividend Dates

The ex-dividend date decides who gets the next payment. On that day, the stock price typically drops by about the dividend amount. Here is why, and why buying just for the dividend rarely works.

Who gets paid

To receive a dividend, you must own the stock before the ex-dividend date. Since U.S. stock trades moved to one-business-day settlement in May 2024, the ex-dividend date and record date are usually the same day. Buy the day before the ex-date and you get the dividend; buy on the ex-date and the seller keeps it.

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