![]() The Ex-Dividend Date is a Non-Event for Current Shareholdersįor many investors, collecting a dividend is something they don’t even think about. In this article, we’ll help investors understand what they need to know about the ex-dividend date including a strategy that traders can use around the ex-dividend date (or ex date). However, they will not be able to receive the upcoming dividend if they were not a shareholder of record before the ex-dividend date. On the ex-dividend date (see below), at the opening of trading, Company A’s stock will be marked down by $1.25 ($5/4 = $1.25).Īny investor buying stock will be purchasing it at the discounted price, $148.75. A simple example can help explain this.Ĭompany A’s stock is selling for $150 per share, and it announces a $5.00 annual dividend that will be paid in quarterly installments. When a stock sells ex-dividend it is trading without the dividend added to its stock price. Knowing when a stock trades ex-dividend is essential to ensuring investors receive a sought-after dividendĮx-dividend means “without the dividend”.
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