Final answer:
The dates associated with dividend payments, in proper order, are Declaration Date, Ex-Dividend Date, Record Date, and Payment Date. These dates are crucial for investors who are interested in receiving dividends as they indicate when investors need to own the stock and when they will receive the payment.
Step-by-step explanation:
Dates Associated with Dividend Payment
The process of a dividend payment involves several key dates that are important for both companies and investors. Understanding these dates ensures that investors are aware of when they can expect dividend payments and what eligibility requirements they must meet. Here is a list of these dates in their proper order:
Declaration Date: This is the date on which the board of directors announces to shareholders and the public that the company will pay a dividend.
Ex-Dividend Date: After the declaration has been made, the company sets an ex-dividend date, which is typically two business days before the record date. Investors must own the stock before the ex-dividend date to be entitled to the dividend.
Record Date: The company prepares a list of all shareholders as of this date to determine who is eligible to receive the dividend.
Payment Date: This is the date when dividends are actually paid out to investors. It occurs after the record date.