"Cum" means "with" in Latin. If you buy shares cum-dividend, you are buying them at a time when you will be entitled to receive the next dividend. This is as opposed to ex-dividend. If restrictions on entitlement to dividends didn't exist, people would simply buy shares the day before the dividend was due, collect it and then sell them the day after.
A share on which the right to receive the next dividend is included. At the time of the declaration of a dividend, a date will be given when the register will be closed and all people on the register at that time will receive the dividend. Shares are usually quoted cum-dividend either from the day the dividend is declared or three weeks before the register is closed, which is usually about the same amount of time. The date the register is closed is called the ex date and the shares will be quoted ex-dividend thereafter. Anyone who buys the shares cum-dividend will receive the dividend and anyone who buys the shares ex-dividend will not.
A share is said to be trading cum-dividend when the payment of a dividend is due in the near future and investors who buy the share now will receive the dividend.... more on: Cum-dividend/ex-dividend
If a share is sold cum-dividend, the buyer will receive the dividend declared just before they bought the share.
If you buy a share that is cum-dividend then you are entitled to receive the last dividend that was declared by the company. See also ex-dividend.
Buyer entitled to pending dividend payments.
Cum means "with". Purchasing shares cum-dividend means the buyer is entitled to the current dividend.
The literal translation is "with dividend"--that is, a stock whose buyer is eligible to receive a declared dividend. Stocks are cum-dividend when a buy trade is made on or before the third day preceding the record date. After the third day, trades are executed ex-dividend (without dividend). See: Declaration Date; Dividend; Ex-Dividend; Record Date
If you sell a share just before the date you become entitled to a dividend, the share is sold cum-dividend. The purchaser of the share(s) then receives the dividend.