The ex-dividend date is the cut-off date established by a company in order to determine which shareholders are eligible to receive a declared dividend or distribution. Shareholders who have purchased the stock before the ex-dividend date are entitled to the dividend. Transactions that occur on or after the ex-dividend date are not entitled to the dividend. This date is important for investors as buying a stock before or on the ex-dividend date ensures they receive the upcoming dividend.
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Jenna Lofton, MBA is a stock trading and investment expert with over a decade of experience in the financial industry. She began her career as a financial advisor on Wall Street and now helps everyday investors make smarter financial decisions through StockHitter.com.
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