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Regarding this paragraph: "When the market opens on the ex-dividend date, the exchanges automatically decrease the price of the stock by the amount of the dividend. This is done because the dividend payout will decrease the value of the company, as it comes directly from the company's reserves."
This seems highly doubtful. The market never automatically adjusts the price of any stock except in the case of a stock split.
It may be that investors are willing to pay less for a stock, thus the price goes down on the ex-dividend date. But many stocks continue to go up on the ex-dividend date as well. I don't think there is anything automatic about it. --scottjduffy
I agree with scottjduffy: prices on the exchange are established by supply and demand, not by declaration on the part of the exchange. Anomalocaris 03:32, 11 March 2007 (UTC)
It may depend on which exchange you are using. On ASX, open orders are cancelled when a stock goes ex dividend. Horatio 01:14, 17 September 2007 (UTC) =You're leaving out thr part about how some business entities dont have to pay taxes on dividends but do on capital gains, so they can afford to take the dividend and then sell the stock and still make money. And then you mike get into the buyback logic. WFPM WFPM ( talk) 12:54, 17 October 2008 (UTC)
I removed this sentence: "For large dividends, the ex-dividend date is typically after the record date." In my experience, for large dividends the ex-dividend date is two business days before (with the same exceptions), just like any dividend. Perhaps you meant to say that for open-end mutual funds, the ex-dividend date is the day after the record date - that might be true.
Here is an example of a large dividend in my experience. In the June 22, 2006 Wall Street Journal, page C9, Corporate Dividend News, a large $3.3877 dividend was declared for "MS Estrn Europe Fd RNE" with a record date of "6-30" (June 30, 2006). Now turn to the June 29, 2006 Wall Street Journal, which shows how stocks traded on June 28. On page B7, bottom half where it says "CLOSED-END FUNDS", column 7, you'll find "MS EstEur RNE sx". The "x" means it went ex-dividend on that day, June 28 (see "How to Read the Stock Tables" on page C5). June 28 is two business days before June 30 as normal, as are all dividends in my experience - although I don't trade open end mutual funds. Art LaPella 18:27, 5 August 2006 (UTC)
Do we have to merge? Dividend is about 17K, approaching the 30K level where Wikipedia:Summary style recommends splitting off subtopics like this one down into sub-articles, like this one. We could consolidate some repeated information, both duplicated information within this article itself, and information in the Dividend article that could be summarized away, leaving this article to explain details like Columbus Day. Art LaPella 17:30, 11 April 2007 (UTC)
I am totally against merging. This an encyclopedia and not a big, fat novel that explains everything on the planet in one article. The information has to be accessible in reasonable little chunks. Otherwise my research takes twice the time. Thanks for your understanding. Hirsch.im.wald 21:40, 6 May 2007 (UTC).
The article as written goes into a great deal (and probably excessive) detail about how full days are counted, but doesn't explain what happens if trades are made during critical dates (e.g., the record date). For example, is it ownership at the close of the market, at the end of after-hours trading, at the open of market, at midnight, or some other time that is used? —Preceding unsigned comment added by 75.36.154.75 ( talk) 03:48, August 29, 2007 (UTC)
The Ex-dividend date article states:
If you buy on or prior to the ex-dividend date, you are buying in time to receive and be entitled to the upcoming dividend payment. Selling your stock on the ex-dividend date or after, means selling it without the dividend. The buyer of you stock will not receive the latest dividend payment pay-out, but would receive the next dividend pay-out if held one day prior to the next ex-dividend date.
When the owner sells the stock on/soon after (before the record date) the ex-dividend date, the owner is "selling it without the dividend." However, does this mean that the "owner" who just sold the stock will still receive the dividend pay-out? I understand that the new owner who just bought the shares will not receive the dividend pay-out because he did not buy the shares three days before the record date; however, does this mean that no one will receive a dividend payout for those shares just sold between the ex-dividend date and the record date? Or will the previous owner still receive a dividend pay-out because he owned it, originally, three days before the record date? —Preceding unsigned comment added by 165.123.231.71 ( talk) 22:07, 1 November 2008 (UTC)
This question is from a seller's perspective: Ex Dividend date is tomorrow Friday 13th June. Today is Thursday the 12th June. I purchased shares a year ago so I own them. If I sell them today on Thursday 12th June, I will still own the shares up until till T+3 settlement which is up to Tuesday the 17th (ignoring 2 days in the weekend) ie past the ex dividend date. Will I still be entitled to the dividend? — Preceding unsigned comment added by 203.0.77.123 ( talk) 01:10, 12 June 2014 (UTC)
Here is the bottom lime question. In the example regarding Dupont if you buy the stock on the 11th and sell the stock on the 13th do you get the dividend? ----
Is too XD — Preceding unsigned comment added by Gabo162000 ( talk • contribs) 23:27, 6 July 2012 (UTC)
"An investor only needs to own the stock for one day (the record date) to be entitled to receive the dividend payment. If the investor buys before the ex-dividend date, and sells on the ex-dividend date or after, the investor will receive the dividend payment."
Which is the one day you need to own it for? The Record Date or (two business days earlier) the XD? 76.126.215.43 ( talk) 04:40, 22 January 2013 (UTC)
The day before ex-dividend date Quantanew ( talk) 08:12, 22 January 2013 (UTC)
One reason to be befuddled is because there is a distinction between buying a stock, and actually owning it three business days later. That complication is explained at Ex-dividend date#Background. You need to buy it before the ex-dividend date to get the dividend. But you need to own it on the record date to get the dividend. Art LaPella ( talk) 21:17, 22 January 2013 (UTC)
The intro is confusing to the layman. Simply put, dividend payments goes to whoever is/was holding the stock before the The Ex-dividend Date. — Preceding unsigned comment added by 119.247.68.90 ( talk) 02:28, 18 March 2014 (UTC)
".. for sales on or after the date, the seller is entitled to the dividend." It is only the 'First' seller that gets the dividend. — Preceding unsigned comment added by Preroll ( talk • contribs) 06:56, 4 May 2015 (UTC)
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do weekend dates (when markets normally closed or closed for a holiday) count when figuring T+2 for a dividend 104.35.132.8 ( talk) 14:14, 27 February 2024 (UTC)
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Regarding this paragraph: "When the market opens on the ex-dividend date, the exchanges automatically decrease the price of the stock by the amount of the dividend. This is done because the dividend payout will decrease the value of the company, as it comes directly from the company's reserves."
This seems highly doubtful. The market never automatically adjusts the price of any stock except in the case of a stock split.
It may be that investors are willing to pay less for a stock, thus the price goes down on the ex-dividend date. But many stocks continue to go up on the ex-dividend date as well. I don't think there is anything automatic about it. --scottjduffy
I agree with scottjduffy: prices on the exchange are established by supply and demand, not by declaration on the part of the exchange. Anomalocaris 03:32, 11 March 2007 (UTC)
It may depend on which exchange you are using. On ASX, open orders are cancelled when a stock goes ex dividend. Horatio 01:14, 17 September 2007 (UTC) =You're leaving out thr part about how some business entities dont have to pay taxes on dividends but do on capital gains, so they can afford to take the dividend and then sell the stock and still make money. And then you mike get into the buyback logic. WFPM WFPM ( talk) 12:54, 17 October 2008 (UTC)
I removed this sentence: "For large dividends, the ex-dividend date is typically after the record date." In my experience, for large dividends the ex-dividend date is two business days before (with the same exceptions), just like any dividend. Perhaps you meant to say that for open-end mutual funds, the ex-dividend date is the day after the record date - that might be true.
Here is an example of a large dividend in my experience. In the June 22, 2006 Wall Street Journal, page C9, Corporate Dividend News, a large $3.3877 dividend was declared for "MS Estrn Europe Fd RNE" with a record date of "6-30" (June 30, 2006). Now turn to the June 29, 2006 Wall Street Journal, which shows how stocks traded on June 28. On page B7, bottom half where it says "CLOSED-END FUNDS", column 7, you'll find "MS EstEur RNE sx". The "x" means it went ex-dividend on that day, June 28 (see "How to Read the Stock Tables" on page C5). June 28 is two business days before June 30 as normal, as are all dividends in my experience - although I don't trade open end mutual funds. Art LaPella 18:27, 5 August 2006 (UTC)
Do we have to merge? Dividend is about 17K, approaching the 30K level where Wikipedia:Summary style recommends splitting off subtopics like this one down into sub-articles, like this one. We could consolidate some repeated information, both duplicated information within this article itself, and information in the Dividend article that could be summarized away, leaving this article to explain details like Columbus Day. Art LaPella 17:30, 11 April 2007 (UTC)
I am totally against merging. This an encyclopedia and not a big, fat novel that explains everything on the planet in one article. The information has to be accessible in reasonable little chunks. Otherwise my research takes twice the time. Thanks for your understanding. Hirsch.im.wald 21:40, 6 May 2007 (UTC).
The article as written goes into a great deal (and probably excessive) detail about how full days are counted, but doesn't explain what happens if trades are made during critical dates (e.g., the record date). For example, is it ownership at the close of the market, at the end of after-hours trading, at the open of market, at midnight, or some other time that is used? —Preceding unsigned comment added by 75.36.154.75 ( talk) 03:48, August 29, 2007 (UTC)
The Ex-dividend date article states:
If you buy on or prior to the ex-dividend date, you are buying in time to receive and be entitled to the upcoming dividend payment. Selling your stock on the ex-dividend date or after, means selling it without the dividend. The buyer of you stock will not receive the latest dividend payment pay-out, but would receive the next dividend pay-out if held one day prior to the next ex-dividend date.
When the owner sells the stock on/soon after (before the record date) the ex-dividend date, the owner is "selling it without the dividend." However, does this mean that the "owner" who just sold the stock will still receive the dividend pay-out? I understand that the new owner who just bought the shares will not receive the dividend pay-out because he did not buy the shares three days before the record date; however, does this mean that no one will receive a dividend payout for those shares just sold between the ex-dividend date and the record date? Or will the previous owner still receive a dividend pay-out because he owned it, originally, three days before the record date? —Preceding unsigned comment added by 165.123.231.71 ( talk) 22:07, 1 November 2008 (UTC)
This question is from a seller's perspective: Ex Dividend date is tomorrow Friday 13th June. Today is Thursday the 12th June. I purchased shares a year ago so I own them. If I sell them today on Thursday 12th June, I will still own the shares up until till T+3 settlement which is up to Tuesday the 17th (ignoring 2 days in the weekend) ie past the ex dividend date. Will I still be entitled to the dividend? — Preceding unsigned comment added by 203.0.77.123 ( talk) 01:10, 12 June 2014 (UTC)
Here is the bottom lime question. In the example regarding Dupont if you buy the stock on the 11th and sell the stock on the 13th do you get the dividend? ----
Is too XD — Preceding unsigned comment added by Gabo162000 ( talk • contribs) 23:27, 6 July 2012 (UTC)
"An investor only needs to own the stock for one day (the record date) to be entitled to receive the dividend payment. If the investor buys before the ex-dividend date, and sells on the ex-dividend date or after, the investor will receive the dividend payment."
Which is the one day you need to own it for? The Record Date or (two business days earlier) the XD? 76.126.215.43 ( talk) 04:40, 22 January 2013 (UTC)
The day before ex-dividend date Quantanew ( talk) 08:12, 22 January 2013 (UTC)
One reason to be befuddled is because there is a distinction between buying a stock, and actually owning it three business days later. That complication is explained at Ex-dividend date#Background. You need to buy it before the ex-dividend date to get the dividend. But you need to own it on the record date to get the dividend. Art LaPella ( talk) 21:17, 22 January 2013 (UTC)
The intro is confusing to the layman. Simply put, dividend payments goes to whoever is/was holding the stock before the The Ex-dividend Date. — Preceding unsigned comment added by 119.247.68.90 ( talk) 02:28, 18 March 2014 (UTC)
".. for sales on or after the date, the seller is entitled to the dividend." It is only the 'First' seller that gets the dividend. — Preceding unsigned comment added by Preroll ( talk • contribs) 06:56, 4 May 2015 (UTC)
Hello fellow Wikipedians,
I have just modified one external link on Ex-dividend date. Please take a moment to review my edit. If you have any questions, or need the bot to ignore the links, or the page altogether, please visit this simple FaQ for additional information. I made the following changes:
{{
dead link}}
tag to
http://www.nasd.com/RulesRegulation/NoticestoMembers/2000NoticestoMembers/NASDW_003997When you have finished reviewing my changes, you may follow the instructions on the template below to fix any issues with the URLs.
An editor has reviewed this edit and fixed any errors that were found.
Cheers.— InternetArchiveBot ( Report bug) 21:20, 26 December 2017 (UTC)
do weekend dates (when markets normally closed or closed for a holiday) count when figuring T+2 for a dividend 104.35.132.8 ( talk) 14:14, 27 February 2024 (UTC)