What is the name of the date when the actual dividend check is paid to investors?

What is the name of the date when the actual dividend check is paid to investors?

• A. Record Date
• B. Ex-Date
• C. Payable Date
• D. Declaration Date

Answer: (C)

The date when the actual dividend check is paid to investors is known as the Payable Date. This is the date that a company distributes the dividend to shareholders who hold the stock on the record date. On this day, shareholders receive the payment of the dividend, which reflects the company's profits and rewards its investors. Understanding the importance of the Payable Date is crucial for investors, as it directly impacts cash flow. It is important to note that the record date is significant as it determines which shareholders are eligible to receive the dividend, but it is on the Payable Date that the actual funds are disbursed. Similarly, the declaration date is when the company announces its intention to pay a dividend, and the ex-date is the date before which a buyer must purchase the stock to be entitled to the dividend. The clarity of these terms is essential for effective investment planning and management.

The date when the actual dividend check is paid to investors is known as the Payable Date. This is the date that a company distributes the dividend to shareholders who hold the stock on the record date. On this day, shareholders receive the payment of the dividend, which reflects the company's profits and rewards its investors.

Understanding the importance of the Payable Date is crucial for investors, as it directly impacts cash flow. It is important to note that the record date is significant as it determines which shareholders are eligible to receive the dividend, but it is on the Payable Date that the actual funds are disbursed. Similarly, the declaration date is when the company announces its intention to pay a dividend, and the ex-date is the date before which a buyer must purchase the stock to be entitled to the dividend. The clarity of these terms is essential for effective investment planning and management.