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What is the declaration date for a dividend?

The declaration date is when the Board of Directors would approve the dividend and announce the future dividend payment to shareholders. The declaration date is when the dividend becomes a liability for the company.


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  • What is a dividend?

    A dividend is when a company distributes profits to its shareholders. Typically, dividends are in the form of cash and are distributed when the company has excess cash that is not reinvested into the business. A company can also issue a stock dividend or property dividend.

  • What is the ex-dividend date for a dividend?

    The ex-dividend date is the day where the stock no longer is entitled to the next dividend payment that had been declared. The ex-dividend date occurs after the date of declaration but before the record date. The ex-dividend date is typically the day before the record date. There is no financial statement impact on the […]

  • When must a company record a liability for a cash dividend?

    When the Board of Directors approve and announce a cash dividend, then the company must record a liability for the dividend. This date is known as the “Declaration Date”.