Cum dividend financial definition of cum dividend
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; said of a stock
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
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.