AboutPaul Henneman Expertise Stock forecasting and fair market valuations.
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Expert: Paul Henneman Date: 2/21/2004 Subject: dividend
Question Hi Paul,
Concerning stock dividends, the ex-date means the stock trades with no dividend. Is that for the day, or week, or how long?
Thank you,
Randy
Answer Randy,
Thank you for your question!
I'm not really sure what is meant by 'ex-date' in relation to dividends. But here is some related information that may answer the question:
Dividends are usually paid out quarterly, perhaps the payment schedule is the ex-date.
I also found this well stated definition of ex-dividend on www.harrsdirect.com:
Ex-Dividend
A synonym for "without dividend," it is the time period between a dividend announcement and payment during which an investor who buys the stock's shares is not entitled to receive the dividend. For example, a dividend may be declared as payable to holders of record on the company's books on a given Friday (the record date). The New York Stock Exchange would declare the stock "ex-dividend" as of the opening of the market on the preceding Wednesday (two business days prior to the record date). Therefore, an investor who buys the stock on or after that Wednesday is not be entitled to that dividend. It is common for a stock's price to increase by the dividend amount as the ex-dividend date gets closer. It then usually drops by the dividend amount after the ex-dividend date. A stock that is ex-dividend is marked with an "x" in the stock table listings in newspapers.
I hope this helps! Please do not hesitate to follow up with me if I can be of any additional service,
Sincerely,
Paul Henneman
President
ValuEngine, Inc.
www.ValuEngine.com
