What does the ex dividend date mean for a dividend paying stock.?

Question

What does the ex dividend date mean for a dividend paying stock.?

Answer 1

It means that all those owners of record preceding the ex-dividend date will participate in dividend distribution.  Anyone owning stock at or beyond the ex-dividend date will not participate (will not receive dividend payments until the next scheduled distribution date the following quarter - assuming they maintain stock ownership and the board continues to support distributing a dividend).

Answer 2

that other answer is correct as far as it goes, but might be a tad confusing.

On ex-date the value of the dividend, say .50 is taken out of the price of the stock so, if there are no trades the specialist marks down the previous night's offer by at least .50.

If you own the stock on this date you are entitled to the cash, if you sell it  on this date you are already missing the dividend.

give the points to the other guy, he was right, and first . . .  that's the way the market should work.  

Answer 3

It is the first day that the stock trades without the dividend.  Usually two business days before the record date.  If you buy on the ex-div date, you don't get the dividend, if you sell on the ex-div date, you do.  If you buy the day before the ex-div date, you do get the dividend, if you sell the day before the ex-div date, you don't.