cum dividend

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

Describing a share being traded where the buyer is entitled to the next dividend. That is, the seller sells the right to the next dividend along with the actual share. Shares are traded cum dividend before the ex-dividend date.

Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

cum dividend

adj. (of a particular SHARE) including the right to receive the DIVIDEND that attaches to the share. If shares are purchased on the STOCK EXCHANGE cum. div., the purchaser would be entitled to the dividend accruing to that share when the dividend is next paid. Compare EX DIVIDEND.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005