The date a cash dividend becomes a binding legal obligation to a corporation is the

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The declaration date is the date on which the board of directors of a corporation announces and declares a dividend payment. It is on this date that the dividend becomes a binding legal obligation for the corporation to pay to eligible shareholders. The other dates (earnings date, payment date, and record date) are important in the dividend payment process, but they do not mark the point at which the dividend becomes a legal obligation.

The Date a Cash Dividend Becomes a Binding Legal Obligation