Question

On may 10, the ceo of massmachine announced a quarterly dividend of $.50 per share to be paid on june 25 to all stockholders on the record as of friday june 6. what is the latest date that you could purchase the stock and receive the quarterly dividend

Answer 1

It would be on June 3rd. This is the day before the ex-dividend date. The ex-dividend date for stocks is typically set one working day before the record date. If you acquire a stock on its ex-dividend date or after, you will not obtain the next dividend imbursement. As an alternative, the vendor gets the dividend. If you buy earlier than the ex-dividend date, you can get the dividend.