Cum dividend - With dividend. Used in the context of general equities. With dividend; said of a stock whose buyer is eligible to receive a declared dividend. Stocks are usually cum dividend for trades made on or before the fifth trading day preceding the record date, when the register of eligible holders is closed for that dividend period. Antithesis of ex-dividend.
When a share is said to be "cum dividend", it means that it is offered for sale with an entitlement to the next dividend payment attached. This dividend will already have been declared (but not paid) by the company, so the market knows how much it is worth and the share price will reflect this.At some point shortly before payment of the dividend is actually due, the share will go "ex dividend", meaning that it is being offered for sale without the dividend. If the current owner sells an "ex div" share, he will keep the dividend payment. But again, the price of the share will reflect this - it will have dropped from its "cum dividend" price.
Cum dividend : with dividend. used in the context of general equities. with dividend; said of a stock whose buyer is eligible to receive a declared dividend. stocks are usually cum dividend for trades made on or before the fifth trading day preceding the record date, when the register of eligible holders is closed for that dividend period. antithesis of ex-dividend.
when a share is said to be "cum dividend", it means that it is offered for sale with an entitlement to the next dividend payment attached. this dividend will already have been declared (but not paid) by the company, so the market knows how much it is worth and the share price will reflect this.at some point shortly before payment of the dividend is actually due, the share will go "ex dividend", meaning that it is being offered for sale without the dividend. if the current owner sells an "ex div" share, he will keep the dividend payment. but again, the price of the share will reflect this - it will have dropped from its "cum dividend" price.
Cum dividend