What is the chronology of a dividend payment?
A)declaration date, holder-of-record date, ex-dividend date, payment date
B)declaration date, ex-dividend date, holder-of-record date, payment date
C)declaration date, holder-of-record date, payment date, ex-dividend date
D)holder-of-record date, declaration date, ex-dividend date, payment date

Question

Quizplus · Accepted Answer

The chronology of a dividend payment starts with the declaration date where the company announces the dividend amount and the ex-dividend date. The ex-dividend date is the date when the investors can buy or sell the company's shares without affecting their right to receive the dividend. Then the holder-of-record date is when the company determines the eligible shareholders who will receive the dividend. Lastly, the payment date is when the dividend is actually paid to the eligible shareholders. Therefore, the correct chronology of a dividend payment is the declaration date, ex-dividend date, holder-of-record date, and payment date, which is represented by option B.

What Is the Chronology of a Dividend Payment