Ex-Dividend Dates: When Are You Entitled to Stock and Cash Dividends
To determine whether you should get a dividend, you need to look at two important dates. They are the "record date" or "date of record" and the "ex-dividend date" or "ex-date."
Concept at a glance
Definition and explanation
To determine whether you should get a dividend, you need to look at two important dates. They are the "record date" or "date of record" and the "ex-dividend date" or "ex-date." [1]
When a company declares a dividend, it sets a record date when you must be on the company's books as a shareholder to receive the dividend. Companies also use this date to determine who is sent proxy statements, financial reports, and other information. [1]
Once the company sets the record date, the ex-dividend date is set based on stock exchange rules. The ex-dividend date for stocks is usually set as the record date or one business day before if the record date is not a business day. If you purchase a stock on its ex-dividend date or after, you will not receive the next dividend payment. Instead, the seller gets the dividend. If you purchase before the ex-dividend date, you get the dividend. [1]
Here are two examples to demonstrate how ex-dividend dates may work: [1]
Declaration Date: Monday, March 2, 2026 Record Date: Monday, March 16, 2026 Ex-Dividend Date: Monday, March 16, 2026 Payable Date: Tuesday, March 17, 2026 [1]
On March 2, 2026, Company XYZ declares a dividend payable on March 17, 2026, to its shareholders. XYZ also announces that shareholders of record on the company's books on or before March 16, 2026, are entitled to the dividend. In this example, the record date falls on a Monday. Excluding weekends and holidays, the ex-dividend would be set on the record date of March 16, 2026. This means anyone who bought the stock on Monday, March 16, 2026, or after would not get the dividend. At the same time, those who purchase before the ex-dividend date will receive the dividend. [1]
Declaration Date: Monday, March 2, 2026 Record Date: Sunday, March 15, 2026 Ex-Dividend Date: Friday, March 13, 2026 Payable Date: Tuesday, March 17, 2026 [1]
On March 2, 2026, Company XYZ declares a dividend payable on March 17, 2026, to its shareholders. XYZ also announces that shareholders of record on the company's books on or before March 15, 2026, are entitled to the dividend. In this example, the record date falls on a Sunday. Since the record date is a weekend day, the ex-dividend would be set one business day before the record date on Friday, March 13, 2026. This means anyone who bought the stock on Friday, March 13, 2026, or after would not get the dividend. At the same time, those who purchase before the ex-dividend date will receive the dividend. [1]
With a significant dividend, the price of a stock may fall by that amount on the ex-dividend date. [1]
If the dividend is 25% or more of the stock value, special rules apply to the determination of the ex-dividend date. In these cases, the ex-dividend date will be deferred until one business day after the dividend is paid. In the above examples, the ex-dividend date for a stock that’s paying a dividend equal to 25% or more of its value, is Wednesday, March 18, 2026. [1]
Sometimes a company pays a dividend in the form of stock rather than cash. The stock dividend may be additional shares in the company or in a subsidiary being spun off. The procedures for stock dividends may be different from cash dividends. The ex-dividend date is set the first business day after the stock dividend is paid (and is also after the record date). [1]
If you sell your stock before the ex-dividend date, you also are selling away your right to the stock dividend. Your sale includes an obligation to deliver any shares acquired as a result of the dividend to the buyer of your shares, since the seller will receive an I.O.U. or "due bill" from his or her broker for the additional shares. Thus, it is important to remember that the day you can sell your shares without being obligated to deliver the additional shares is not the first business day after the record date, but usually is the first business day after the stock dividend is paid. [1]
If you have questions about specific dividends, you should consult with your financial advisor. [1]
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Frequently asked questions
What does Ex-Dividend Dates: When Are You Entitled to Stock and Cash Dividends mean in the cited reference?
To determine whether you should get a dividend, you need to look at two important dates. They are the "record date" or "date of record" and the "ex-dividend date" or "ex-date." [1]
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Reviewed 23 October 2026. Historical dates and award-time affiliations retain their original context. A review date is not an event date. Background sources are identified separately from official records.