Companies often payout a portion of its profits as dividends to the shareholders. Dividend payouts are a way to provide shareholders with a return on their investment. The board of directors issues a declaration stating how much will be paid out and over what timeframe. This declaration implies a liability for the dividend payments. The declaration date is the first of four important dates in the dividend payout process. Before a cash dividend is declared and subsequently paid to shareholders, a company's board of directors must decide to pay the dividend and in what amount. The board must agree on the cash amount to be paid to the shareholders, both individually and in the aggregate. The board must also set a record date to determine which stockholders are entitled to receive the dividend, decide on the payment date, and notify the stockholders. Have a fruitful learning. Pleases see the presentation.

Bridgit Peter

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