Asked by Cortni Mckinney on Jun 18, 2024
Verified
Which of the following is the correct chronology of a dividend payment?
A) Declaration date, Date of record, Ex-dividend date, Date of payment.
B) Declaration date, Ex-dividend date, Date of record, Date of payment.
C) Declaration date, Date of record, Date of payment, Ex-dividend date.
D) Declaration date, Date of payment, Date of record, Ex-dividend date.
E) Declaration date, Ex-dividend date, Date of payment, Date of record.
Ex-Dividend Date
The specific date on which a stock is set to go "ex-dividend," meaning that shareholders of record as of that date will be entitled to receive the declared dividend.
Declaration Date
The specific date on which a company announces its next dividend payment, detailing the amount and when it will be paid.
Date of Record
The specified date when a company determines the owners of its stock to be eligible for a forthcoming dividend or corporate action.
- Apprehend the chronological order and purpose of dividend-related dates.
Verified Answer
JP
Jared ParrishJun 18, 2024
Final Answer :
B
Explanation :
The correct sequence for a dividend payment is: 1) Declaration date - the date on which the board of directors announces the dividend, 2) Ex-dividend date - the date on which the stock starts trading without the dividend included in its price, 3) Date of record - the date by which you must be on the company's books as a shareholder to receive the dividend, and 4) Date of payment - the date on which the dividend is actually paid out to shareholders.
Learning Objectives
- Apprehend the chronological order and purpose of dividend-related dates.