cum dividend

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Related to cum dividend: Ex dividend, Record date

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.

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.

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.

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.
References in periodicals archive ?
70) Thus, when the Shell stock went from trading cum dividend to ex dividend, it also went from trading cum withholding tax liability to trading ex withholding tax liability.
72) When the Shell ADRs went from trading cum dividend to ex dividend, their price dropped not by the gross dividend, but by the net dividend.
If such taxpayers determined the market price of Shell stock cum dividend in 1992, the dividend would have been worth its gross amount (not its net amount).
71) That is to say, if there was only going to be one dividend payment, perhaps because the payor plans to switch from dividends that are subject to the withholding tax to redemptions that are not, the cum dividend price will be lower in the second case than the first by the amount of tax to be withheld on the one remaining dividend payment.
73) Several commentators have argued that what made the dividend-stripping transactions attractive to Compaq was that the cum dividend price of the Shell stock was already reduced by the value of the Dutch withholding tax.
If the tax had no impact so that the stock traded cum dividend at a price that reflected the gross dividend, then there would be no negative implicit tax.
115) If the market is liquid and deep with many trades, the negative implicit tax is the excess of the gross dividend over the stock price drop when the stock shifts from trading cum dividend to ex dividend.
A short arbitrageur is someone who sells shares cum dividend and buys them back ex dividend.
For either buyers or sellers, they can trade shares cum dividend or ex dividend.
For both taxable and nontaxable distributions, if the expected return is greater than 2c/(1-c), then institutions will buy cum dividend and sell ex dividend.