A dividend is the distribution of a company's earnings to a class of its shareholders, as determined by the company's board of directors. Common shareholders of dividendpaying companies are typically eligible as long as they own the stock before the exdividend date. Dividend as an attraction for company to retain existing shareholders and attract new investors to invest in companys shares. Dividends may be paid out as cash or in the form of additional stock.

From the above statement, distinguish the pro and cons of paying the dividend.