Ex-Dividend Date

Explanation

To receive a dividend, you must own the stock before the ex-dividend date. On the ex-date, the stock price theoretically drops by the dividend amount. The key dates in order: declaration date (board announces dividend), ex-dividend date (cutoff for eligibility), record date (official ownership check), and payment date (cash delivered). Some investors practice 'dividend capture' — buying before and selling after the ex-date — but this strategy is largely tax-inefficient because the stock price drops by approximately the dividend amount.