What is Ex-Date, Ex-Dividend Date, Record Date?

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Here are relevant dates you need to know that are related to the announcement and distribution of dividends by companies.

Dividend Declaration Date

The Declaration Date is simply the date the company makes the announcement that it is issuing dividends. During this date, the company also typically announces the ex-date, record date and payment date.

Ex-Date (or Ex-Dividend Date)

The Ex-Date, also called the Ex-Dividend Date, is the first day when buying a stock DOES NOT entitle the buyer to the dividends. Think of it as the first day you are “EX-cluded” from receiving dividends. Prior to this date, the stock trades cum-dividend or “with dividend.” From the ex-date onwards, anyone who buys the stock does not anymore have the right receive the announced dividend.

Record Date

The Date of Record is when the company looks at its “records” or “books” to see who are the shareholders entitled to receive the dividend. Typically as long as you own the stock before the ex-date, your name will be “on record” and you will be entitled to receive the dividends.

Payment Date

The Payment Date is simply the date when the company disburses the cash dividend to stockholders on record. It is usually credited to one’s trading account or, alternatively, a check is sent to the stockholder.

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Note: This is the seventh part in Pinoy Money Talk’s primer on stock trading and investing, with a focus on investing in the Philippine stock market.

About the Author

James Ryan Jonas teaches business strategy, investments, and entrepreneurship at the University of the Philippines (UP). He is also the Executive Director of UP Provident Fund Inc., managing and investing P3.1 Billion ($56 Million) worth of retirement funds on behalf of thousands of UP employees.

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10 thoughts on “What is Ex-Date, Ex-Dividend Date, Record Date?”

  2. hi! In PSE, Is an EX-DATE for a special dividend or a 25%(or more) stock dividend defined the same with an EX-DATE for a less than 25% stock dividend?

    Reply

  3. How about after the record date you sell your shares? Are you still entitled to receive the dividends until payment date or they automatically exclude you to the records? tnx Newbie here

    Reply

  4. i invested in stocks last year. now my stocks gained about P50k. I would’nt earned this much had i placed it on time deposit. if i placed my money in time time deposit, i will earn the 50K in 8 years.

    Reply

  6. Just wondering, before I consider subscribing… is this an actual, individually composed letter to each subscriber, or does each writer compose a single letter every week and send the same composition to all on the subscribers they’re assigned to write to?

    Reply

  7. This is the info I’ve been looking for. New stock market investor here. Kasi magbibigay daw ng dividends ang MER sa Sept. 2014 hindi ko alam if kasama ang shares ko dun, ngayon alam ko na na kasama pala. Thanks! 🙂

    Reply

  8. how about for stock dividends. For example, EW 50% stock div, ex dividend date is Mar 26, can i buy on Mar 25 and sell on Mar26?

    Reply

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