BTW Corp.Declared a $1.00 dividend on January 5^th,with an ex-dividend date of January 19^th,a record date of January 21^st,and a payment date of March 15^th.Joe purchased BTW stock on January 6^th. A) Joe will not receive the dividend because he purchased the stock after the declaration date. B) Joe will not receive the dividend because he purchased the stock prior to the record date. C) Joe will receive the dividend if he still sells his stock on January 20th because he owned the stock on the ex-dividend date. D) Joe will receive the dividend if he still owns the stock on January 21st, even if he sells the stock before the payment date.

Question

Quizplus · Accepted Answer

Joe will receive the dividend if he still owns the stock on January 21st, even if he sells the stock before the payment date. This is because the record date is the date on which the company determines who is eligible to receive the dividend.

BTW CorpDeclared a $1