An ex-dividend is a term used to describe a type of stock purchase in which the buyer does not receive the dividend associated with the stock in the next payment of dividends, rather, the next dividend is paid to the seller. Usually, companies fixed a date (known as the ex-dividend date) before which a buyer of a stock can be entitled to receive the next dividend payments. When the buyer buys the stocks before this date, he/she is entitled to be paid in the next dividend payment. If the buyer purchases a stock on the ex-dividend date or after this date, then the seller receives the dividend payments and not the buyer.