The ex-dividend date is the first day a stock trades without the right to its next dividend: to receive the payment, you must buy the shares before that day. Since US stock trades moved to one-day settlement on May 28, 2024, the ex-dividend date for regular dividends is the same business day as the record date, when the company checks who its shareholders are [3][4]. Coca-Cola (KO), for example, declared a 53-cent quarterly dividend on July 15, 2026, for shareholders of record on September 15, payable October 1; buyers on or after September 15 did not receive it [1][2]. On the ex-date, the share price typically opens lower by roughly the dividend, so buying just before it does not create free money.
What are the four dividend dates?
Every regular cash dividend has four dates. Coca-Cola's third-quarter 2026 dividend shows them:
| Date | What happens | Coca-Cola, 2026 |
|---|---|---|
| Declaration date | The board announces the amount and the other dates. | July 15 |
| Ex-dividend date | Shares start trading without the dividend. Buy before this day to receive it. | September 15 |
| Record date | The company's list of shareholders entitled to the dividend is fixed. | September 15 |
| Payment date | Cash arrives in shareholders' accounts. | October 1 |
Source: Coca-Cola dividend announcement and DataPorium dividend history [1][2].
The amount was $0.53 per share, up from $0.51 a year earlier, so a holder of 100 shares received $53 on October 1, 2026 [1][2].
Why is the ex-dividend date the same as the record date now?
The ex-date depends on how long trades take to settle, meaning how long until the buyer officially becomes the owner. To be on the company's books on the record date, a trade must settle by that date.
The Securities and Exchange Commission shortened the standard settlement cycle from two business days (T+2) to one (T+1), with a compliance date of May 28, 2024 [3]. Exchanges then changed their rule: for normal cash distributions, the ex-dividend date became the same business day as the record date [4]. Under T+2, the ex-date had been one business day before the record date.
A worked example
- Buy Coca-Cola on Monday, September 14, 2026: the trade settles Tuesday, September 15, the record date. You are a shareholder of record and receive the dividend.
- Buy on Tuesday, September 15 (the ex-date): the trade settles Wednesday, September 16, a day too late. The seller receives the dividend.
- Sell on the ex-date: you still receive the dividend, because you owned the shares on the record date.
What happens to the stock price on the ex-dividend date?
A company that pays out cash is worth that much less, so in principle the share price falls by about the dividend when the stock goes ex. In practice, the move is mixed with everything else that moves the stock that day.
| Stock and ex-date | Dividend | Close the day before | Open on the ex-date | Close on the ex-date |
|---|---|---|---|---|
| Coca-Cola, September 15, 2026 | $0.53 | $89.35 | $88.53 | $88.71 |
| Realty Income (O), September 30, 2026 | $0.272 | $55.14 | $55.01 | $54.30 |
Source: DataPorium daily prices and dividend history [2][5].
Coca-Cola opened 82 cents lower and closed 64 cents lower against a 53-cent dividend: the market fell by roughly the dividend plus normal daily movement [2]. Realty Income, a real estate investment trust that pays monthly, opened 13 cents lower against a 27-cent dividend, then closed 84 cents lower on a day when the stock was already in a downtrend: it fell from $61.25 on September 4 to $54.18 on October 9, 2026 [5]. On any single day, news and interest rates move a stock far more than a small dividend does.
Buy before the ex-dividend date to receive the dividend; but the share price usually drops by about the same amount on that date, so the timing alone creates no gain.
How do you find a stock's next ex-dividend date?
The company's own announcement is the authoritative source: the declaration press release names the amount, the record date and the payment date, as Coca-Cola's did on July 15, 2026 [1]. Under T+1 the ex-date is simply the record date for regular dividends, so the record date in the release is the date to watch [4].
Most companies keep a regular rhythm, which makes the next date predictable but not certain. Coca-Cola's last four quarterly ex-dates fell in December 2025 and in March, June and September 2026, and Realty Income's fall at the end of each month [2][5]. A company can change the schedule, skip a payment or change the amount at any declaration, so an estimated date is not a promise. DataPorium's markets calendar lists upcoming corporate events, and each stock page shows the dividend history by ex-date [2].
Does dividend capture work?
Dividend capture means buying just before the ex-date and selling right after to collect the dividend. The price drop on the ex-date usually offsets the dividend, so the strategy relies on the drop being smaller than the payout. Trading costs, the bid-ask spread and taxes then work against it.
Taxes are the main reason. Qualified dividends are taxed at the lower long-term capital gains rates, but only if the shares were held for more than 60 days during the 121-day period that begins 60 days before the ex-dividend date [6]. A shareholder who buys the day before the ex-date and sells days later fails that test, so the dividend is taxed at ordinary income rates.
What else should dividend investors check?
- Dividend frequency: most US companies pay quarterly; some, such as Realty Income, pay monthly, with a separate ex-date each month [5].
- Special dividends: one-time payouts can follow different ex-date rules, so check the company's announcement.
- Payment changes: companies announce increases or cuts on the declaration date; Coca-Cola raised its quarterly dividend from $0.51 to $0.53 in 2026 [2].
- Yield versus safety: a high yield can signal a cut ahead; DataPorium's guide to dividend yield traps covers the warning signs [7].
Each DataPorium stock page lists the company's past dividends by ex-date and amount, for example Coca-Cola's [2].
Frequently asked questions
Do I get the dividend if I buy on the ex-dividend date?
No. Shares bought on the ex-date settle one business day after the record date, so the seller receives the dividend. Buy at least one business day earlier [3][4].
Do I get the dividend if I sell on the ex-dividend date?
Yes. You owned the shares on the record date, which since May 2024 is the same day as the ex-date, so the dividend is paid to you on the payment date [4].
What is the difference between the record date and the payment date?
The record date fixes who receives the dividend; the payment date is when the cash arrives. For Coca-Cola's 2026 third-quarter dividend, they were September 15 and October 1 [1].
How long do I need to hold a stock for a qualified dividend?
More than 60 days during the 121-day period that starts 60 days before the ex-dividend date, according to IRS Publication 550 [6].
Sources & References
- [1] The Coca-Cola Company, Board of Directors Elects New Officer and Declares Regular Quarterly Dividend (July 15, 2026)
- [2] DataPorium Coca-Cola (KO) stock page (daily prices and dividend history)
- [3] U.S. Securities and Exchange Commission, SEC Finalizes Rules to Reduce Risks in Clearance and Settlement (February 15, 2023)
- [4] U.S. Securities and Exchange Commission, Release No. 34-99873, NYSE National notice on ex-dividend dates under T+1 (April 1, 2024)
- [5] DataPorium Realty Income (O) stock page (daily prices and dividend history)
- [6] Internal Revenue Service, Publication 550, Investment Income and Expenses (accessed October 13, 2026)
- [7] DataPorium Articles, Dividend Yield Traps: Warning Signs in the Data
