11 Facts About Ex-dividend date

Ex-dividend date, known as the reinvestment date, is an investment term involving the timing of payment of dividends on stocks of corporations, income trusts, and other financial holdings, both publicly and privately held.

The ex-date or ex-dividend date represents the date on or after which a security is traded without a previously declared dividend or distribution.

Ex-dividend date thus resolves payment to the share owner identified on the company's share register as of the record date.

If, for whatever reason, a share transfer prior to the ex-dividend date is not recorded on the register in time, the seller is obligated to repay the dividend to the buyer when he receives it.

The ex-dividend date is normally the business day before the record date.

For instance, if the record date is Sunday, then the ex-dividend date is the preceding Thursday, not Friday — assuming no intervening holidays.

Ex-dividend date is usually the business day prior to the record date.

An investor who wishes to be entitled to the dividend does not have to wait until after the record date to sell the stock; however, the investor must hold the stock until the ex-dividend date.

Ex-dividend date is a factor in computing US taxes that depend on holding periods.

Shares listed on the London Stock Exchange, the ex-dividend date is usually one business day before the record date.

The ex-dividend date is almost always on a Thursday with the associated record date on the next day.