The ex-dividend date is the cutoff date set by a company for determining which shareholders are eligible to receive an upcoming dividend payment. To receive the dividend, you must own the shares before the ex-dividend date. If you buy shares on or after the ex-dividend date, you will not receive that dividend; it will go to the previous owner. On the ex-dividend date, a stock's price typically drops by approximately the dividend amount, reflecting the value being paid out. There is also a record date (when the company checks its shareholder records) and a payment date (when dividends are distributed).