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Question

What is the Cum Dividend?

Answer

Purchase of a share cum dividend conveys upon the buyer entitlement to the next dividend payable from the issuing company.

This is the opposite of ex-dividend, whereby there is no entitlement to the next dividend. So if the market sets an ex-dividend date of 25/05/2011, all shares purchased up to and including 24/05/2011 would be cum-dividend and therefore eligible for the next dividend payment.

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