The date on which a cash dividend becomes a legal obligation is the:

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The declaration date is when the board of directors announces the dividend payment and sets the amount. This is the date on which a cash dividend becomes a legal obligation. The date of record is the date on which shareholders must be on the company's books to receive the dividend, while the payment date is when the dividend is actually distributed. The last day of the fiscal year may or may not be relevant to dividend payments.

The Date on Which a Cash Dividend Becomes a Legal