Cash dividend is a cash payment made to the shareholders of a corporation.
Generally, cash dividends are reported in dollars per share when discussing common stock. When discussing preferred stock, dividends are often quoted as a percentage of the par value of the stock.
Let's assume you own 100 shares of XYZ Company. At the end of the quarter XYZ Company calculates its financial performance for the quarter. The board of directors then reviews this information, including XYZ Company's profit margin, and declares a $0.10 dividend per share for the quarter. This means that you are entitled to $0.10 x 100 shares = $10. There are several important dates to note when a firm's board of directors declares a dividend. These include: • 1 Declaration Date: This is the date on which a company's board of directors declares that a dividend will be paid. The board determines the amount of the dividend, as well as when it is to be paid to shareholders of record. • 3 Record Date: This is the date on which a company reviews its books to determine its shareholders of record. Shareholders who hold a particular stock on this date will receive the firm's dividend payment. • 2 Ex-Dividend Date: After the Record Date has been determined, the stock exchanges or the National Association of Securities Dealers (NASD) assign the ex-dividend date. The ex-dividend date for stocks is typically two business days prior to the record date. If an investor buys a stock before the ex-dividend date, then he or she will receive the dividend payment. If an investor purchases the stock on or after the ex-dividend date, then he or she is not entitled to receive the dividend.
4 dividend payable date is the date on which a company pays a dividend to its shareholders of record.
Let's assume you own 100 shares of Company XYZ. At the end of the quarter (say, March 30), Company