IHTM18110 - Stocks and shares: listed stocks, shares and investments: other issues: dividends

The ex-dividend marking refers to dividends that are declared but not yet paid at the date of valuation.

A listed company usually pays a dividend on its shares twice a year. The value of the dividend is announced some weeks before it is actually paid. In the intervening period,

• the value of the shares does not reflect the additional dividend, but
• its quotation on the stock exchange (IHTM18092) is endorsed ‘XD’ (ex-dividend) to reflect it.

The value of the dividend is then usually provided separately in pence per share (except for Unit Trust funds (IHTM18095)).

• If the deceased/transferor held ‘XD’ shares, the right to receive the dividends is an asset of the chargeable estate (IHTM04043). The dividends should be included at their full quotation value.