The process of distributing cash dividends typically involves several steps:
Declaration Date: The Board of Directors announces the dividend payment, specifying the amount per share and the payment date. Record Date: Shareholders who own the stock on this date are eligible to receive the dividend. Ex-Dividend Date: The stock begins trading without the value of the dividend. Purchasers on or after this date are not entitled to the dividend. Payment Date: The company distributes the dividend payments to eligible shareholders.