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Ex-dividend date

The first day a buyer no longer receives the coming dividend. The price typically drops by roughly the dividend that morning, which is arithmetic rather than a sell-off.

Updated 2026-09-05

The ex-dividend date is the first day on which a buyer does not receive the upcoming dividend. Buy on or after it and the payment belongs to the seller.

The share price typically opens lower by roughly the dividend amount that morning. That is not a sell-off and not a signal. The company is about to be worth exactly that much less because the cash is leaving, and the price is simply arithmetic catching up.

This is why buying a share purely to collect an imminent dividend accomplishes nothing. You pay for the dividend in the price, receive it as cash, and are taxed on it.

See also

  • Dividend — Cash paid out to shareholders. It is a decision about what to do with free cash flow, not a measure of how much of it there is.
  • Settlement — The day a trade actually completes and ownership transfers. US equities settle one business day after the trade, which is what T+1 means.

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Educational content, not investment advice. Angie explains how a valuation is built so you can judge it yourself. What you do with that is your call.

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