A dividend or special dividend is when a company distributes cash to its existing shareholders.
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Who gets it: Shareholders who own shares in a company at the end of trading on the day before the ex-date.
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Ex-date impact: On the ex-date, the stock price usually drops. This can make it look like you’ve lost money before the market opens.
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Cash dividend: The value of the price drop is essentially converted into cash dividends, which are then added to your account.
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Distribution date: Cash dividends are credited to your account on this date.
A special dividend is a type of dividend given for a specific reason, such as a company's investments returning a profit, rather than the main business making a profit.
