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DSE Record Date vs Ex-Date: What Dividend Investors Must Know

DSE Record Date vs Ex-Date: What Dividend Investors Must Know

SA

Sarah Ali

May 07, 2026 7 min read Dividends Educational

Record date and ex-date are the two most important dates for anyone collecting dividends on the Dhaka Stock Exchange. Buy one day too late and you get nothing. Sell one day too early and you miss the payout. This guide explains exactly how these dates work on DSE, when you must hold shares to qualify, and the common mistakes that cost investors money.

What Is the Record Date?

The record date is the date a company uses to determine which shareholders are eligible to receive a dividend. If your name appears in the company's share register on the record date, you receive the dividend.

On DSE, companies announce the record date through official disclosures filed with the exchange. You can find these announcements on the DSE website and in weekly market roundups like our April 27-May 1 roundup.

For example, if JAMUNABANK declares a 12% cash dividend with a record date of May 15, every shareholder registered on May 15 receives that dividend.

What Is the Ex-Date?

The ex-date (short for "ex-dividend date") is the first trading day when a stock trades without the upcoming dividend included in its price. If you buy the stock on or after the ex-date, you do not receive the dividend.

On DSE, the ex-date is always two trading days before the record date. This two-day gap accounts for the T+2 settlement cycle used by the Dhaka Stock Exchange.

Why two days? Because DSE settles trades on a T+2 basis. When you buy shares on Monday, your name does not appear in the register until Wednesday. So to be on the register by the record date (Friday, for example), you must buy by Wednesday, which means the ex-date is Thursday.

How Record Date and Ex-Date Work Together

Here is the complete timeline for a dividend payment on DSE:

EventWhat HappensImpact on You
Declaration DateCompany announces dividend amount and record dateStock price may jump on the news
Ex-DateStock starts trading without the dividendMust buy BEFORE this date to qualify
Record DateCompany checks register for eligible shareholdersYour name must be in the register
Payment DateDividend is credited to your BO accountCash dividend arrives in your bank; stock dividend appears in your CDBL account

The key rule: You must buy the stock before the ex-date. Buying on the ex-date or after means you get no dividend.

Real Example: How It Plays Out on DSE

Let us say PREMIERCEM declares a 15% cash dividend with a record date of Thursday, May 15, 2026.

DateDayWhat Happens
May 12 (Mon)Trading DayLast day to buy and qualify for the dividend
May 13 (Tue)EX-DATEStock opens lower (adjusted for dividend). Buying today = no dividend
May 14 (Wed)Trading DayStock trades ex-dividend
May 15 (Thu)RECORD DATECompany checks the register. Shares bought May 12 are now settled and registered

Notice the ex-date is May 13 (Tuesday), which is exactly two trading days before the record date of May 15 (Thursday). The T+2 settlement means your May 12 purchase settles on May 14, so your name is in the register by May 15.

What Happens to the Stock Price on Ex-Date?

On the ex-date, the stock price typically drops by approximately the dividend amount. This is not a crash. It is a mechanical adjustment because the dividend is no longer "attached" to the stock.

For example, if SOUTHEASTB trades at Tk 20 on the day before ex-date and declares a Tk 2 cash dividend per share, the stock will open around Tk 18 on the ex-date. You still have Tk 20 in total value (Tk 18 in stock + Tk 2 in dividend), just split differently.

This is why chasing dividends for quick profit does not work. The price drop on ex-date offsets the dividend. Dividend investing only pays off when you hold long-term and the stock recovers its price.

Cash Dividend vs Stock Dividend: Key Differences

DSE companies pay dividends in two forms, and the record date rules apply to both:

Cash DividendStock Dividend (Bonus Share)
What you getCash in your bank accountExtra shares in your CDBL account
Payment timelineWithin 30 days of record dateWithin 30 days, but CDBL processing adds a few days
Tax10% withholding tax deducted at source10% withholding tax on face value
Price adjustmentStock drops by dividend amount on ex-dateStock drops proportionally (more shares = lower per-share price)
Long-term impactReduces book value per shareDilutes EPS but increases total shares

Learn more about dividend types in our dividend guide (available in Bangla).

5 Common Mistakes DSE Investors Make With Dividend Dates

1. Buying on the record date. This is the most common mistake. By the time the record date arrives, it is too late. You needed to buy before the ex-date, which is two trading days earlier. If TAKAFULINS has a record date of May 20, the ex-date is May 18. Buy on May 20 and you get nothing.

2. Selling on the ex-date and still getting the dividend. This actually works. If you held shares before the ex-date, you can sell on the ex-date and still receive the dividend because your name is already in the register. The buyer on ex-date does not get it.

3. Assuming all dividends are cash. Many DSE companies issue stock dividends (bonus shares) instead of or in addition to cash. A "10% dividend" could mean Tk 1 per share in cash, or one bonus share for every 10 shares held. Always check the dividend type in the company disclosure.

4. Ignoring the withholding tax. All dividends on DSE are subject to a 10% withholding tax at source. If a company declares a 12% cash dividend, you receive 10.8% after tax. Factor this into your yield calculations.

5. Buying just for the dividend. As explained above, the ex-date price drop offsets the dividend. You only profit if the stock recovers and grows beyond the dividend amount. Read our DSE Beginners Guide for a broader investing framework.

How to Find Record Dates on DSE

You can find upcoming record dates from several sources:

  • DSE official website (dsebd.org) publishes corporate announcements including dividend declarations and record dates
  • CDBL (Central Depository Bangladesh Limited) sends notifications to your BO account when a dividend is credited
  • Broker platforms typically show ex-dates in their market data
  • stock-ai.live covers dividend declarations and record dates in our weekly roundups

Also watch for price limit open announcements, which often coincide with earnings and dividend disclosures.

Dividend Calendar: How to Plan Your Trades

Smart dividend investors on DSE follow a simple calendar:

  1. January-March: Watch for dividend declarations as companies announce AGM dates and proposed dividends
  2. March-May: Peak AGM and record date season. Most companies declare and pay dividends during this window
  3. June-August: Late AGMs and second-half dividends
  4. October-December: Interim dividends from a few companies, early declarations for next year

The heaviest dividend activity on DSE happens between March and May, when most AGMs take place. This is when you see the most record dates and ex-dates clustering together.

Step-by-Step: How to Capture a Dividend on DSE

Follow this checklist every time you want to capture a dividend:

  1. Find the declaration: Check DSE disclosures for the dividend amount, type (cash or stock), and record date
  2. Calculate the ex-date: Subtract 2 trading days from the record date. Skip weekends (Friday-Saturday on DSE)
  3. Buy before ex-date: Place your buy order at least one trading day before the ex-date
  4. Hold through the ex-date: You can sell on the ex-date itself and still receive the dividend
  5. Wait for payment: Cash dividends arrive in your bank account within 30 days. Stock dividends appear in your CDBL account

Pro tip: Set price alerts on your broker platform for the ex-date. This helps you track the price adjustment and decide whether to hold or sell.

Key Takeaways

  • Record date is when the company checks who qualifies for the dividend
  • Ex-date is two trading days before the record date (due to T+2 settlement)
  • You must buy before the ex-date to receive the dividend; buying on the record date is too late
  • The stock price drops on ex-date by approximately the dividend amount, so chasing dividends for quick profit does not work
  • You can sell on the ex-date and still receive the dividend if you held before it
  • 10% withholding tax applies to all dividends on DSE, whether cash or stock

Want to start investing on DSE? Read our DSE Beginners Guide or learn how to open a BO account.

Frequently Asked Questions

Can I buy a stock on the record date and still get the dividend?
No. The record date is when the company checks the register. Because of T+2 settlement, buying on the record date means your shares settle two days later, after the register has already closed. You must buy before the ex-date.
What if the ex-date falls on a DSE holiday?
If the ex-date falls on a holiday (DSE is closed on Fridays and Saturdays, plus national holidays), it shifts to the next trading day. The two-trading-day gap from ex-date to record date still applies.
Do I need to hold shares until the payment date?
No. Once you qualify (held before the ex-date), you can sell on the ex-date or any day after. The dividend is paid to whoever was in the register on the record date, regardless of whether they still hold the stock on payment day.
What happens to bonus shares after a stock dividend?
Bonus shares from a stock dividend are credited to your CDBL account, typically within 2-4 weeks of the record date. You can trade them once they appear in your BO account. The ex-date price adjustment already accounts for the additional shares.
Is dividend income taxable in Bangladesh?
Yes. A 10% withholding tax is deducted at source on all dividend payments. For cash dividends, the tax is deducted before the amount hits your bank account. For stock dividends, the 10% is calculated on the face value of the bonus shares. You may also owe additional tax depending on your total income bracket.