# Ex-dividend date

> The first trading day on which a stock trades without the right to its next dividend; buyers on or after this date do not receive it.

Source: https://www.quantisnow.com/glossary/ex-dividend-date
Topic: Glossary / Dividends
Also known as: ex-date, ex-dividend, ex-div date
Last updated: 2026-10-27

The ex-dividend date is the first trading day on which a stock trades without the right to receive its most recently declared [dividend](https://www.quantisnow.com/glossary/dividend). To collect the dividend, you must buy the shares before the ex-date; anyone who buys on or after it does not get that payment, and the seller does.

## How it works

The ex-date exists because trades take time to settle. Since the US moved to [T+1 settlement](https://www.quantisnow.com/glossary/t-plus-1) on May 28, 2024, a trade settles one business day after execution. As a result, for regular cash dividends the ex-dividend date is now normally the same business day as the [record date](https://www.quantisnow.com/glossary/record-date). Under the earlier T+2 cycle, the ex-date fell one business day before the record date.

There is an important exception: for large distributions, generally 25% or more of the stock's value, the ex-date is set as the first business day after the [payment date](https://www.quantisnow.com/glossary/payment-date). Sellers in between deliver the dividend through "due bills."

On the ex-date, the stock's price typically opens lower by roughly the dividend amount, all else equal, because new buyers no longer receive the payment.

## Why it matters for traders

The ex-date is the date that actually determines eligibility, so it is the one dividend investors schedule around. Buying a stock the day before the ex-date just to capture the dividend (a "dividend capture" strategy) rarely produces a free gain, since the price drop on the ex-date offsets it, and the dividend may be taxed at ordinary rates if the holding period for qualified dividends is not met. Options traders watch ex-dates because early exercise of in-the-money calls becomes more likely the day before.

## Example

Pinecrest Foods (ticker PCFD) declares a $0.45 dividend with a record date of Thursday, May 14. Under T+1, the ex-date is also May 14. An investor who buys on Wednesday, May 13, receives the dividend. One who buys on May 14 does not. If PCFD closed at $36.00 on May 13, it might open near $35.55 on May 14, all else equal.

## FAQ

### If I buy on the ex-dividend date, do I get the dividend?

No. You must buy before the ex-date. Buying on the ex-date or later means the seller gets the dividend.

### Can I sell on the ex-dividend date and still get the dividend?

Yes. If you owned the shares before the ex-date, you can sell on the ex-date and still receive the payment.

## Related terms

- [Record date](https://www.quantisnow.com/glossary/record-date.md): The date a company uses to determine which shareholders are entitled to a dividend or other distribution, or to vote at a meeting.
- [Dividend](https://www.quantisnow.com/glossary/dividend.md): A distribution of a company's profits or cash to shareholders, usually paid in cash on a regular schedule after being declared by the board.
- [Payment date](https://www.quantisnow.com/glossary/payment-date.md): The date a company actually pays a declared dividend to eligible shareholders, usually days or weeks after the record date.
- [Declaration date](https://www.quantisnow.com/glossary/declaration-date.md): The date a company's board announces a dividend, setting its amount, ex-dividend date, record date and payment date.
- [T+1 settlement](https://www.quantisnow.com/glossary/t-plus-1.md): The US standard under which most stock trades settle one business day after the trade date, in effect since May 28, 2024.
- [Special dividend](https://www.quantisnow.com/glossary/special-dividend.md): A one-time dividend paid outside a company's regular schedule, often after an asset sale, a windfall or a buildup of excess cash.

## On Quantisnow

- [Dividend dates explained](https://www.quantisnow.com/guides/dividend-dates-explained)
- [Dividend tracker](https://www.quantisnow.com/dividends)
- [Dividend announcements](https://www.quantisnow.com/categories/dividends)
- [Dividend yield and DRIP calculator](https://www.quantisnow.com/tools/dividend-calculator)