Ex-dividend date

The ex-dividend date is the cut-off date from which a share trades without the right to a declared dividend, so its price typically drops by roughly the dividend amount that morning.

ByHoang TruongUpdated July 11, 2026

See it move

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A company declares a €0.75 dividend while its stock closes at €40.00 the day before the ex-dividend date. Once shares go ex-dividend, that €0.75 is no longer attached, so the price opens around €40.00 − €0.75 = €39.25. The record date and payment date follow later, but entitlement is fixed at the ex-dividend cut-off.

Where it fits

SubjectCorporate FinanceCoreTopicDividend Policy & PayoutCore

The formula

LaTeX

P_{ex} = P_{cum} - D

Variables

$P_{e x}$: Expected opening price on the ex-dividend date (€ per share)
$P_{c u m}$: Closing price the day before the ex-dividend date (cum-dividend) (€ per share)
$D$: Dividend declared per share (€ per share)

Approximates the expected drop in a share's opening price on its ex-dividend date, assuming no other price movement.

Check yourself

PracticeCORE

A share closes at €58.00 the day before its ex-dividend date. The company has declared a dividend of €1.20 per share. Assuming the price adjusts purely for the dividend with no other price movement, what price would you expect the shares to open at on the ex-dividend date?

Select an answer to check your understanding.