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ex-dividend date and P/L

Hi,

If I close my position (sell my stock) after the ex-dividend date, does Quantopian still pay me the dividend? Is this factored in the back tests? If yes, when is the dividend added to the P/L. On the payout date or on the ex-dividend date?

Best regards,
Pravin

2 responses

I am not certain, but I believe that yes, you'll get that cash flow on the payment date. There are often little divots in the equity curve when it dips ex-date as the asset drops by the amount, then pops back up a few days later when the cash arrives.

If Quantopian accounts for this it is great. However, the dividend should be added to P/L on ex-dividend date (discounted if required) because that is how it is done in financial institutions.