What is Ex-Dividend Date? How to Ensure You Get the Dividend
Buy before ex-date to receive the dividend; buy on or after, and you miss it.
The ex-dividend date is the date from which a stock trades without the right to receive the upcoming dividend. If you buy the stock on or after the ex-date, you will not receive the declared dividend. To get the dividend, you must own shares before the ex-date.
With T+1 settlement in India, you must buy at least one trading day before the record date. The ex-date is typically one day before the record date. If the record date is Thursday, ex-date is Wednesday. Buy by Tuesday to be on record.
How does ex-date affect stock price?
On ex-date, the stock price typically drops by approximately the dividend amount. This is a mechanical adjustment because the stock no longer carries dividend entitlement.
Can I buy on ex-date and still get dividend?
No. With T+1 settlement, buying on ex-date means settlement happens on record date itself, which is too late. You need to buy and settle before the record date.
Track ex-dividend dates for all stocks on Stockk Equity. Never miss a dividend with your Stockk demat account.
Investments in securities market are subject to market risks. This article is for educational purposes only and does not constitute investment advice. INDIRA SECURITIES PRIVATE LIMITED : SEBI REG. NO.: INZ000188930, NSE TMID: 12866, BSE TMID: 663, CDSL DPID: 17000, MCX TM ID: 56470, NCDEX TM ID: 01277, CDSL REG.NO.: IN-DP-90-2015, CIN:U67120MP1996PTC085111, RA SEBI REG. No.: INH000023269, IA SEBI REG No.: INA000021410. For any complaints pertaining to securities broking please write to [email protected], for DP related to [email protected].
Frequently Asked Questions
Is dividend capture strategy profitable?
The stock drops by the dividend amount on ex-date, so there is no free money. After tax, it can even be negative. Long-term holding is more effective. Use StockkAsk at stockk.trade/stockkask for dividend calendars.
What about dividends on shares bought the same day?
If you buy before ex-date and sell after, you receive the dividend but face price adjustment risk.
Do mutual funds also have ex-dates?
Yes. Mutual fund dividends have record dates. NAV adjusts on ex-date similar to stocks.
How do I know the ex-date in advance?
Exchanges announce ex-dates after the company declares dividends. Check exchange websites or financial platforms.
What if I sell before record date but after buying before ex-date?
With T+1 settlement, you need to hold shares on the record date. If you sell before record date, you will not receive the dividend.
Investments in securities market are subject to market risks. This article is for educational purposes only and does not constitute investment advice.
INDIRA SECURITIES PRIVATE LIMITED : SEBI REG. NO.: INZ000188930, NSE TMID: 12866, BSE TMID: 663, CDSL DPID: 17000, MCX TM ID: 56470, NCDEX TM ID: 01277, CDSL REG.NO.: IN-DP-90-2015, CIN:U67120MP1996PTC085111, RA SEBI REG. No.: INH000023269, IA SEBI REG No.: INA000021410
