cum dividend

Cum Dividend

When a buyer of a security is entitled to receive a dividend that has been declared, but not paid.

Notes:

Cum dividend means "with dividend." A stock trades cum-dividend up until the ex-dividend date. On or after this point, the stock trades without its dividend rights.

See also: Book Closure, Dividend, Ex-Date, Ex-Dividend, Record Date

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Cum dividend

With dividend; said of a stock whose buyer is eligible to receive a declared dividend. Stocks are usually "cum dividend" for trades made on or before the third trading day preceding the record date, when the register of eligible holders is closed for that dividend period. Antithesis of ex-dividend.

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cum dividend

Used to refer to a stock trading such that buyers qualify to receive the next dividend payment. Stocks trade cum dividend until the fifth business day before the record date. Compare ex-dividend.