Ex-dividend date, or ex-date

The ex-dividend date, or ex-date, is the day when if an investor buys a company stockon or after this date, they won’t be eligible to receive the next dividend payment. Instead, the seller of the stock will receive the dividend. For example, if at their annual general meeting (AGM) a company declares an ex-dividend date of 1 May, any investors would need to buy the stock before 1 May to be eligible for the dividend, otherwise the previous shareholder receives the payment. At their AGM, a company also sets the record date, which is the day a company records all the registered shareholders who’ll receive a dividend. The ex-date and record date are important in share market trading because share ownership changes constantly, so knowing who is entitled to dividends is crucial.