What is an Ex-Dividend Date?
The ex-dividend date is the key cutoff date for dividend eligibility. To receive the upcoming dividend payment, you must purchase the stock at least one business day before the ex-dividend date. If you buy on or after the ex-date, the dividend goes to the previous owner.
Why Ex-Dividend Dates Matter for Long-Term Investors
For Dividend Kings and Dividend Aristocrats investors, tracking ex-dates helps you build a monthly income stream by staggering purchases across different quarterly payers. Most US dividend stocks pay quarterly, so a well-constructed portfolio can deliver income every single month.
- Payment Date: When the dividend is actually deposited (typically 2โ4 weeks after the ex-date)
- Record Date: The date the company checks its books; usually one business day after the ex-date
- Declaration Date: When the board of directors officially announces the dividend