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This literally means "without dividend." The buyer of shares when they are quoted ex-dividend is not entitled to receive a declared dividend. It is the interval between the record date and the payment date during which the stock trades without its dividend-the buyer of a stock selling ex-dividend does not receive the recently declared dividend. Antithesis of cum dividend (with dividend).
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.


The sale of a security after a dividend has been announced but before it has been distributed. When a security is sold ex-dividend, the dividend remains with the seller. Selling ex-dividend almost invariably reduces the price for which the security is sold by the amount of the dividend. See also: Cum dividend, Ex-dividend date.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


Used to refer to a stock no longer carrying the right to the next dividend payment because the settlement date occurs after the record date. If, for example, GenCorp common stock goes ex-dividend on May 31, an investor purchasing the stock on or after that date will not receive the next dividend check. A stock trading ex-dividend is indicated in stock transaction tables by the symbol x in the volume column. Compare cum dividend.
Case Study A stock's ex-dividend date should be of more interest to an investor than the dividend record date or dividend payment date. A stock must be purchased one day prior to the ex-dividend date for the buyer to claim a dividend that has been announced but not yet paid. Buy shares of stock on the ex-dividend date and the seller, not you, will receive the upcoming dividend. The ex-dividend date is two business days prior to the record date because three days are required for regular settlement of a stock transaction. Buy stock on Tuesday and you will be listed as the owner of record on Friday, the day that payment is required for the purchase. If a firm's directors have declared that a dividend will be paid to stockholders of record on Friday, you must buy the stock the stock on Tuesday in order to have a right to the dividend. In this case the ex-dividend date is Wednesday, two days prior to the record date. Relevant dates for the stock of international petroleum giant BP are illustrated below.
 Quarter 1Quarter 2Quarter 3Quarter 4
Announcement dateFeb 13May 8August 7Nov 6
Ex-dividend dateFeb 21May 16August 15Nov 14
Record dateFeb 23May 18August 17Nov 16
Payment dateMarch 19June 11Sept 10Dec 10

Notice that the record date follows the ex-dividend date by two business days for each quarterly dividend. In the first quarter you must have purchased the stock by February 20 to be listed as a stockholder on February 23 and receive the dividend on March 19. Purchasing the stock on February 21 meant you would not have been listed as a stockholder of record until February 24, one day beyond when the company determined who was to receive the dividend. A weekend or holiday between the ex-dividend and record dates lengthens the time difference to four days or three days, respectively. The schedule for BP indicates owners of the stock on the day prior to the ex-dividend date must wait nearly a month for actual payment of the 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.


You must own a security by the record date the company sets to be entitled to the dividend it will pay on the payable date.

The period between those dates -- anywhere from a week to a month or more -- during which new investors in the security are not entitled to that dividend is called the ex-dividend period.

On the day the ex-dividend period begins, which is the first trade date that will settle after the record date, the stock is said to go ex-dividend.

Generally, the price of a stock rises in relation to the amount of the anticipated dividend as the ex-dividend date approaches. It drops back on the first day of the ex-dividend period to reflect the amount that is being paid out as dividend.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.


in a manner which excludes entitlement to the DIVIDEND which attaches to a share. If shares are purchased on the STOCK MARKET ‘ex div’, the purchasers would not be entitled to the dividend accruing to that share when the dividend is next paid. Compare CUM-DIVIDEND.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson


adj. (of a particular SHARE) excluding entitlement to the DIVIDEND that attaches to the share. If shares are purchased on the STOCK EXCHANGE ‘ex div’., the purchaser would not be entitled to the dividend accruing to that share when the dividend is next paid. Compare CUM-DIVIDEND.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005