Expire dividend right
What is expired dividend right?
It describes the expiry of the right to be paid a dividend on a particular share. Companies set a cut-off date after which someone buying the stock will not be entitled to the latest dividend. Such shares are described as ex-dividend.
Where have you heard about expired dividend right?
Share-price lists will mark those shares that have 'gone ex-dividend', and market reports will often explain a sudden price drop as the fact that the stock in question is now ex-dividend.
What you need to know about expired dividend right.
Company directors, when setting a dividend, will also set a cut-off date after which only those on the share register on that date will be paid a dividend. That means that someone who no longer owns the shares can be entitled to a payout whereas the person to whom the shares have been sold is not. A share that no longer carries the right to the latest payout is called 'ex-dividend' and its price usually falls to reflect the fact.
Find out more about expired dividend right.
Expired dividend right is an aspect of the payment of dividends. Learn more about dividends.