PanPhonDeeIf you want a dividend, you must own the stock before its XD date for that payout. It is the most common mistake new dividend investors make.
What XD means
XD stands for Excluding Dividend. On XD day the SET marks the stock with an XD sign. That means anyone who buys on the XD date or later does not get that dividend. The right stays with people who held the stock before that day.
What is the last day to buy?
The last day to buy and still receive the dividend is the trading day before the XD date. For example, if XD is Wednesday, you must buy by Tuesday. If XD is Monday, the last buy day is the Friday before (weekends and market holidays are skipped).
Do I have to hold until payment day?
No. If you buy before the XD date and sell from the XD date onward, you still receive that dividend. The cash arrives on the payment date the company announces, which is often several weeks after XD. The XD calendar lists both dates.
Why the price often drops on XD day
The dividend has been paid out of the company, so the reference price is adjusted on the XD date by roughly the dividend amount. For example, a THB 1 dividend usually means the reference price falls by about THB 1. That is not automatically a loss: the drop is the cash you are entitled to receive.
Three things to remember
- XD = buyers on that day do not get this dividend.
- Buy at least one trading day before the XD date.
- You can sell from the XD date and still receive the dividend.
Want to see upcoming XD dates? Check the XD calendar (Thai). PanPhonDee can also alert you before each XD date for the stocks you hold.
Don't track XD dates by hand
Add the stocks you hold. PanPhonDee shows their XD dates and alerts you before each one. Free to start.
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For information only. Not investment advice.