Ex-Dividend Date

What Is An Ex-Dividend Date?

An ex-dividend date is the date when a declared stock dividend is paid.

The ex-dividend date details the timing of the payment of dividends of a company’s stock, either privately or publicly held. Because stocks are generally traded frequently, with share changing hands on a daily basis, to ease complication of who gets paid dividends, the ex-dividend date defines the payee. In the United States, the Securities and Exchange Commission allows three days for stock trade settlement (T+3). The ex-dividend date is generally one day before settlement.

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