What does “ex-dividend” mean?
This means ‘without dividend’. Before we announce a dividend, we consult with the dividend procedure timetable issued by the London Stock Exchange and set the ex-dividend date. If you buy shares before the ex-dividend date, you are entitled to the most recently-announced dividend; if you buy after that date, the dividend goes to the previous owner of the shares.
This means “without dividend”. Before we announce a dividend, we will consult with the London Stock Exchange and set the ex-dividend date. If you become a registered shareholder before the ex-dividend date, you are entitled to the most recently-announced dividend; if you buy after that date, the dividend goes to the previous owner of the shares.
This is a description, sometimes abbreviated to ‘xd’ that is often quoted next to a share price. It translates as ‘without dividend’ and means that the next dividend payment is not included in the price of the share. This is necessary because the dividend is paid to all shareholders who were on the register at close of trading on a specified day. Any shareholder buying shares who is registered after this day will not receive the dividend. To compensate for this, the market price usually drops by the amount of the dividend payment and the description ‘xd’ is added to share price quotations to confirm that this has happened. To avoid confusion around this time, prices are sometimes quoted ‘cum dividend’ (meaning ‘with dividend’) which means that the buyer will be entitled to the next dividend payment and the share price has not been adjusted.
“Ex” means without. The “ex-dividend” date is the first date on which you buy a stock without right to receive the recently declared dividend. The opening price of the stock is usually marked down by the amount of the dividend since buyers of the stock on that date will not get the dividend, but the stock price could go up or down from there. Stock transactions take 3 days to settle from the date you purchase or sell. On that third day, the trade is settled and a buyer becomes the record owner (the seller ceases to be the record owner). When a company declares a divided, it states on which date (known as the record date) you have to be a shareholder in order to receive the dividend. Because stock trades take 3 days to settle, you have to buy a stock three days before the record date in order to become a shareholder on the record date. Similarly, if you sell the stock on the ex-dividend date, you will still get the dividend because you will still be the record holder when the trade sett
