Definitions for "Cum-Dividend"
"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