Okuzeka
Investing & the Stock Market vocabulary · Dividends & Corporate Actions

Ex-dividend date

Meaning in investing & the stock market, with examples

/ˌeks ˈdɪvɪdend deɪt/nounCommon term

In investing & the stock market, ex-dividend date means: The first trading day on which a share is sold without the right to the next dividend. Buyers on or after this date do not receive that payment.

In Turkish: temettü hak kesim tarihi, hak kullanım tarihi

How it is used

Investors check the ex-dividend date to know when to own the shares. On that morning the share price usually opens lower by about the dividend amount. Traders say a stock 'goes ex-dividend' or 'trades ex-dividend'. The record date and payment date follow it.

Example sentences

  1. If you buy the shares on the ex-dividend date, you will not get this year's dividend.

  2. The stock fell 3 lira at the open because today is the ex-dividend date.

Common collocations

  • ex-dividend date
  • go ex-dividend
  • trade ex-dividend
  • record date
  • payment date
  • dividendA part of a company's profit that it pays to its shareholders, usually in cash and usually a fixed amount for each share.
  • dividend yieldA company's yearly dividend per share divided by its current share price, shown as a percentage. It shows how much income the share pays compared with its price.
  • settlementThe final step of a trade, when the buyer pays the money and the seller delivers the securities, making the transfer of ownership complete.
  • shareholderA person or organisation that owns one or more shares in a company and therefore owns part of it, with rights such as voting and receiving dividends.

More terms: Dividends & Corporate Actions

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This page explains English vocabulary for learners. It is not financial advice.