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Question 1

Divedends in common stock

Answer 1

The distribution of a company’s stock to shareholders. The board of directors (BOD) vote if and when to make these distributions. The dividends are sent automatically.

Question 2

What are the 3 ways dividends are sent?

Answer 2

Cash Dividends
Stock Dividends
Product Dividends

Question 3

Cash dividends

Answer 3

Issued as a check and taxed as non-qualified or qualified.

Question 4

Stock dividends

Answer 4

Issued as more shares

Question 5

Product dividend

Answer 5

Rare, divedend paid in form of sending a company product

Question 6

The 4 dividend disbursement dates

Answer 6

Declaration date
Ex dividend date
Record date
Payable date

Question 7

Declaration date

Answer 7

The day the BOD approved dividend payment is the date is the dividend was declared.

Question 8

Ex-dividend date

Answer 8

The financial industry regulatory authority (FINRA) or the exchange declare the ex-date based on the dividend record date. The ex date is 1 day before the record date.

Question 9

Record date

Answer 9

All the stockholders on record that own the stock on the record date receive the dividend payment.

Question 10

Payable date

Answer 10

All stockholders listed on the books on the record date are sent a check by tje dividend disburse agent.