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XYZ Company announces a dividend of $2 per share. The record date is June 1, and the dividend payment date is June 10. On which date will the company's stock start trading ex-dividend?

Question

XYZ Company announces a dividend of $2 per share. The record date is June 1, and the dividend payment date is June 10. On which date will the company's stock start trading ex-dividend?

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Solution

The company's stock will start trading ex-dividend on the day after the record date. Therefore, in this case, the stock will start trading ex-dividend on June 2.

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