Market mechanics
What is the ex-dividend date vs the record date for dividend capture strategies?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
The ex-dividend date is the first day a stock trades without the right to the upcoming dividend, while the record date is when the company checks its books to determine registered shareholders eligible for payment.
How it works
To receive a dividend you must own shares before the ex-dividend date; buying on or after it means the seller, not you, is entitled to that payment under current T+1 settlement timing.
An example
Dividend-capture traders buy shares just before the ex-dividend date and sell shortly after, but the stock price typically drops by roughly the dividend amount on the ex-date.
Risk & limitations
Dividend capture strategies often yield minimal net profit after the price drop, spreads, taxes, and commissions are factored in.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.