For example, if the ex-dividend date is next Monday, and I buy the stock on next Monday, would I get the dividend? Or would the person who sold the stock to me get the dividend?

  • ...and would it depend on what time of the day the stock purchase occurred as compared to what time of the day the dividend was declared? Dec 15 '12 at 12:26
  • Time of day would make the process awful, imagine the folk using a live broker, and waiting on hold. Dec 15 '12 at 14:52

Here is the definition of Ex-dividend date from the SEC:

Once the company sets the record date, the stock exchanges or the National Association of Securities Dealers, Inc. fix the ex-dividend date. The ex-dividend date is normally set for stocks two business days before the record date. If you purchase a stock on its ex-dividend date or after, you will not receive the next dividend payment. Instead, the seller gets the dividend. If you purchase before the ex-dividend date, you get the dividend.

The linked document discusses weekend, and holidays involved in the calculation.

The difference between the record date and the ex-dividend is to allow for the three days of settlement.

  • 2
    +1 ex-dividend can be confusing at first, but if you think about it the name makes sense. The ex-div date is the first date on which the stock is bought/sold "ex[cluding]"-dividend. Dec 17 '12 at 5:36

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