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The date on which a stock begins trading without the right to receive the next declared dividend payment.
To receive a dividend, you must purchase the stock before the ex-dividend date. On the ex-dividend date, the stock price typically drops by approximately the dividend amount, reflecting the cash that has been earmarked for payment. For example, if a stock closes at $50 and the dividend is $1, it will open near $49 on the ex-dividend date. Three dates matter in the dividend process: the declaration date (when the dividend is announced), the ex-dividend date (the cutoff for eligibility), and the payment date (when cash is distributed). Trying to capture dividends by buying just before the ex-date is usually a wash after the price adjustment.