Quick answer
The ex-dividend date is the cutoff for a stock's next dividend. If you buy on the ex-dividend date or after it, you will not receive that payment; the seller gets it instead [1].
#What are the four dividend dates?
When a company declares a dividend, it sets a record date: you must be on the company's books as a shareholder on that date to receive the dividend [1]. Once the record date is set, the ex-dividend date is set based on stock exchange rules [1].
Investor.gov's example, with the record date on a business day
Investor.gov's second example shows a record date on Sunday, March 15, 2026; the ex-dividend date then moves back to the previous business day, Friday, March 13 [1]. Separately, since May 28, 2024, trades in stocks, bonds and ETFs settle one business day after the trade date, known as T+1 [2].
#How does the ex-dividend date affect you?
Worked example
One day makes the difference
A company declares a quarterly dividend of $0.24 a share. You want to buy 300 shares.
- Buy before the ex-dividend date: dividend received (300 × $0.24)
- $72
- Buy on or after the ex-dividend date
- $0 — the seller receives it
The ex-dividend date, not the payable date, decides who receives the dividend.
Hypothetical figures, before taxes.
| Date | What it means for you |
|---|---|
| Declaration date | The company announces the amount and the dates |
| Ex-dividend date | Buy on or after this date and you do not get this dividend |
| Record date | Shareholders on the books on this date are paid |
| Payable date | The money arrives |
#Are there exceptions?
Yes. For dividends of 25% or more of the stock's value, special rules apply and the ex-dividend date is deferred until one business day after the dividend is paid [1]. Stock dividends, paid in shares rather than cash, also have their own timing [1]. For the bigger picture, see how dividends work.
Related terms
Frequently asked questions
If I sell on the ex-dividend date, do I still get the dividend?
Yes. Because the buyer on the ex-dividend date does not receive the next dividend, the seller does [1]. You need to have bought before the ex-dividend date.
Is buying just before the ex-dividend date free money?
No. Investor.gov notes that with a significant dividend, the price of a stock may fall by that amount on the ex-dividend date [1]. Taxes can also apply to the dividend.
Sources
Grade A = primary source (regulator, government agency, official rulebook or the index provider's own documents). Numbers in brackets in the text point here.
- U.S. SEC — Investor.gov. Ex-Dividend Dates: When Are You Entitled to Stock and Cash Dividends (2026). Accessed 2026-10-03.A
- U.S. SEC — Investor.gov. New "T+1" Settlement Cycle — What Investors Need to Know (2024). Accessed 2026-10-03.A
This page is general education, not personal financial, tax or legal advice. Figures in worked examples are hypothetical and calculated before taxes and fees unless stated. Rules and limits change; check the linked primary sources for the current version. How we check every page.
