What is ex-distribution date for dividends?
Answers:
ex-dividend date is the cut-off date for paying dividends. if you hold shares on this date you are entitled to get your dividends.
Distribution date is the date you actually get paid.
The ex-distribution (or ex-dividend) date is the date before which you must have purchased the stock in order to be entitled to receive the next dividend payment.
When a company declares a dividend, they set the "record date" for the dividend payment. This is the date on which you must be listed as a stockholder on the company's records in order to receive the dividend payment. In order to allow time for new stock purchasers to be recorded on the company's stockholder register, the Stock Exchange (or NASD) will normally set the "ex-dividend date" two days before the "record date." So, the ex-dividend date is the cutoff date for receiving the next dividend payment.
What this all boils down to is that if you are planning to purchase a stock, and you note that the ex-dividend date is approaching, you must purchase prior to that date in order to receive the most recently declared stock dividend. Conversely, if you are planning to sell a stock, you would likely want to wait until the ex-dividend date so that you will still receive the dividend. (However, if the stock price is falling more than the amount of the dividend, you may not want to wait.)
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