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What is ex-div?

Published October 2026.

Lagos business district at dusk
Lagos. Photo: Clara Sanchiz / Wikimedia Commons (CC BY-SA 2.0)

The three dates that matter

Declaration date: the company announces the dividend, say ₦2.50 per share.

Ex-div date: the cutoff. Buy before this date and you qualify. The NGX typically sets this a few days before the register closes.

Payment date: weeks later, the cash lands in your account (via your broker or CSCS).

Between ex-div and payment, you own the right to cash that has not arrived yet. That is normal.

Why the price drops on ex-div day

On the ex-div morning, the stock opens lower by roughly the dividend amount. This is not a crash; it is arithmetic. A ₦50 stock paying ₦2.50 becomes, all else equal, a ₦47.50 stock plus a ₦2.50 IOU to you.

If you held through ex-div, you lost nothing: the price dip plus the incoming dividend leave you whole. Only sellers on ex-div day lock in the dip without the payout.

A worked example

A company declares ₦2.50 per share with an ex-div date of 9 October. You own 1,000 shares bought on 8 October: you qualify, and ₦2,250 lands in your account after 10% withholding tax. Buy the same 1,000 shares on 9 October and you get nothing; the price typically opens about ₦2.50 lower that morning.

How to use ex-div dates

Want the dividend? Buy at least a day before ex-div and hold through it. Chasing a stock the day before ex-div just for the payout rarely works, because the price already reflects the coming dividend.

Check the dividends page for upcoming qualification dates, and the corporate actions page for the full timetable.