Will the right to receive dividends be exercised during the investment horizon?

The ex-dividend date is a key date that determines who is entitled to receive a dividend. If an investor owns the stock on the day before this date, they will receive the dividend—regardless of whether they sell the stock the next day. On the other hand, if someone buys the stock on the ex-dividend date or later, they are no longer eligible for the dividend. The ex-dividend date therefore acts as a cutoff point that separates those who will receive the dividend from those who won’t. In practice, this means that on the ex-dividend date, the stock price typically drops by roughly the amount of the dividend, as new buyers are no longer entitled to the payout. However, this price adjustment can also be influenced by other market factors. Understanding the ex-dividend date is essential for investors building a dividend-focused portfolio, as well as for active traders.

Why ex-dividend date

Checking the ex-dividend date helps us determine whether a dividend will be paid during the period we plan to hold the stock. Ideally, the ex-dividend date should not fall within this holding period, as it typically causes a technical drop in the stock price by approximately the amount of the dividend. This decline can negatively impact our trading plan—bringing the price closer to the stop-loss level, or even triggering the stop-loss and closing the position entirely. For this reason, it’s important to take the ex-dividend date into account when entering a trade, especially if we’re speculating on short- to medium-term price growth.

Answers and Score

Where to find volatility values?

You can find the value, for example, on finviz.com.

This question is part of this analyzer.

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Does the Ex-Dividend Date Affect My Swing Trading Strategy?