When is the "true" ex-dividend date?

Question

I understand entirely how the dividend process works from declaration, ex-dividend dates, record dates, payments, etc., but I would just like this minor detail about the ex-dividend date. My question is: when exactly (meaning time) do you need to own the stock in order to be eligible to receive the dividend? For example, I would imagine it would most likely be either 12:00 AM on that date (exchange time), or at the opening bell for that exchange. If you know the answer, please cite your source, if possible. Thanks for your help!

The majority of sites I have seen talk about the date only. I am looking for the time only. Thank you.

Answer 1

Things are not settled minute by minute as you describe in your example.

They are recorded by date.  In the US, at 3PM New York time, the exchange closes and the business day is over.  Everything that happened on that day is handled in one big batch.  The after hours trades are held over and settled as part of the next business day's batch.

It's just like your bank account.  You don't get fractional days interest.  You give your deposit to the teller.  If it's before the daily cutoff, it's posted that day.  If you missed the cutoff, they take your money, but you are credits "as of" the next business day.

Answer 2

In order to be eligible for the dividend you would have to buy the stock during normal market hours (8:30 to 3:00 Central) no later than the business day prior to the ex dividend date.  It doesn't matter what time of day you buy the stock.  When the market opens on the ex-dividend date, a buyer of the stock will not get the current dividend and must wait 3 months (usually) for the next one.