A company's 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. In the following table, identify the critical dividend dates. Declaration Ex-Dividend Payment Holder-of-Record Date Date Date Date Date All shareholders as of this date will be mailed a dividend check. Shares purchased on or after this date do not entitle investors to the stock's dividend. Dividend checks are sent to shareholders. The firm announces its intention to pay a dividend