Ex-Dividend Date

The Ex-Dividend Date is a key concept in dividend-paying stocks. If an investor buys shares on or after the ex-dividend date, they will not receive the declared dividend. To be eligible, the shares must be purchased before the ex-dividend date.

Dividend-related timeline includes:

• Declaration Date: Company announces dividend
• Ex-Dividend Date: Cut-off date to determine eligibility
• Record Date: Date when company checks shareholder records
• Payment Date: Dividend is paid to eligible shareholders

On the ex-dividend date, the stock price usually drops by approximately the dividend amount, reflecting the payout. Investors use this date to plan buying and selling strategies around dividend income.

"If a company declares a dividend and sets the ex-dividend date as 10th June, investors must buy the stock before 10th June to receive the dividend. Buyers on or after 10th June will not be eligible."