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Dividend Policy
Dividend policy is a company's strategy or guidelines designed to decide the amount to be paid out to shareholders in the form of dividends.
Dividend Payment
The distribution of a portion of a company's earnings to its shareholders, usually in the form of cash or additional stock.
Declaration Date
The date on which a firm’s directors issue a statement declaring a dividend.
Ex-Dividend Date
The date when the right to the dividend leaves the stock. This date was established by stockbrokers to avoid confusion and is two business days prior to the holder-of-record date. If the stock sale is made prior to the ex-dividend date, the dividend is paid to the buyer. If the stock is bought on or after the ex-dividend date, the dividend is paid to the seller.
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