Question

What three dates are important in performing a dividend payout?

Answer 1

The three important dates in performing a dividend payout are the declaration date, ex-dividend date, and payment date.

Step-by-step explanation:

When a company pays dividends to its shareholders, there are three important dates to consider:

1. Declaration Date: This is the date when the company officially announces that it will be paying a dividend. On this date, the company declares the amount of the dividend and the payment date.
2. Ex-Dividend Date: This is the date on which the stock starts trading without the dividend. If an investor purchases the stock on or after this date, they will not be entitled to receive the upcoming dividend payment.
3. Payment Date: This is the date on which the dividend is actually paid to the shareholders. It is the date when the company distributes the dividend checks or initiates electronic transfers to the shareholders' accounts.

These three dates are important in understanding the timeline and process of a dividend payout.