Which date typically marks the payment date for a declared dividend?

Which date typically marks the payment date for a declared dividend?

• A. Declaration date
• B. Payment date
• C. Record date
• D. Dividend date

Answer: (B)

The payment date is the moment the cash dividend is actually distributed to shareholders. After a dividend is declared, the company sets a record date to determine who is eligible, and the payment date is when the funds are paid out to those holders. The declaration date is when the dividend is approved, and the record date identifies owners; neither of these is the date the payment occurs. So the date that marks the payment is the actual payout date.

The payment date is the moment the cash dividend is actually distributed to shareholders. After a dividend is declared, the company sets a record date to determine who is eligible, and the payment date is when the funds are paid out to those holders. The declaration date is when the dividend is approved, and the record date identifies owners; neither of these is the date the payment occurs. So the date that marks the payment is the actual payout date.