Chapter 17, Problem 17.1CTF

Dividends are paid to the parties listed as shareholders on what date?

Summary Introduction

To decide: The date on which the dividends are payable to the listed shareholders.

Introduction:

Dividend is the portion of the company’s earnings distributed to the parties, listed as shareholders of the company.

Explanation of Solution

Once the company finalizes its income statement, dividends payable are declared to the shareholders. Dividends are payable on the payment date or payable date. The shareholders who owned the shares before the ex-dividend date are allowed to the declared dividends.

Those who are not in the idea of reinvesting the shares will get the dividend on the payment dates.

Pictorial representation:

The date on which the company pays dividend to its shareholders:

Conclusion

Thus, the shareholders will get their dividends payable by the company on the payment dates if there are eligible, and the dividends are payable on quarterly basis.