The ex-dividend date is the cutoff date that determines whether a buyer of a stock is entitled to its next declared dividend. Investors who own the stock before the ex-dividend date receive the upcoming dividend; those who buy on or after it don’t, even if they buy just one day later. This is distinct from the payment date, when the dividend is actually credited to shareholders, which typically falls some weeks after the ex-dividend date. Share prices commonly adjust downward by roughly the dividend amount on the ex-dividend date itself, since the stock is trading without that pending payout attached for new buyers from that point on. Investors specifically targeting dividend yield need to track ex-dividend dates directly to make sure a purchase actually qualifies for the payout they’re expecting.