A companys dividend policy refers to the manner in which a firm distributes its earnings to shareholders. Firms can pay out cash in one of two ways: a dividend or a share repurchase. Before 1983, stock repurchases were fairly rare, but today they are common. When a firm decides to pay a dividend, it usually follows the following process.

Several critical dates play a role in the dividend payment procedure. Identify the critical dividend dates.

What is the date that dividend checks are sent to shareholders?

Payment Date , Holder-of-Record , Date Ex-Dividend , or Date Declaration Date ?

Shares purchased on or after this date do not entitle investors to the stocks dividend.

Payment Date, Ex-Dividend Date , Holder-of-Record Date , or Declaration Date ?

All shareholders as of this date will be mailed a dividend check.

Holder-of-Record Date, Payment Date, Ex-Dividend Date, or Declaration Date ?

What is the date that the firm announces its intention to pay a dividend?

Declaration Date , Payment Date , Holder-of-Record , Date Ex-Dividend Date ?