Ex-dividend dates, explained in plain words

When a company on the GSE pays a dividend, three dates matter. Knowing which is which tells you whether a dividend will come to you.

The three dates

Declaration date. The company announces the dividend: how much per share, and the other dates.

Ex-dividend date. From this day, the shares trade without the dividend. If you buy on or after the ex-date, the dividend goes to the person who sold to you.

Payment date. The day the money is paid to everyone who was entitled, usually some weeks later.

The rule in one line

You get the dividend if you hold the shares at the end of the day before the ex-dividend date. That's how Breakeven works out your entitlement: shares from trades dated before the ex-date.

What about selling?

If you sell before the ex-date, you won't receive that dividend. If you sell on or after the ex-date, you still will, even though you no longer hold the shares when it's paid.

That's why Breakeven shows a notice when a declared ex-date is coming up on one of your holdings. It's a fact about the dates, not a suggestion either way.

Withholding tax

Dividends in Ghana are paid after withholding tax. The rate is on your dividend advice, and you enter it with the dividend in Breakeven. The tax is worked out to the pesewa, and if what reached your account is different, you can enter the amount you actually received.

Dividends and your break-even

Money you've received as dividends is money back. So Breakeven shows two break-evens side by side: on price alone, and counting the dividends you've been paid. Read more in break-even with dividends.