What is a Declaration Date?
A declaration date (or announcement date) is the actual date that the board of directors of a company announces their intention of a dividend payment. This is the day the company will officially owe the stockholders the dividend. A dividend is a distribution of a portion of the profits of the company. It is paid to both common and preferred shareholders. Most companies that pay dividends pay them on a quarterly basis. This would mean that if your company had a $1 US dollar (USD) dividend, you would receive $.25 (USD) per share every three months. A declaration date is announced for each stock dividend payment. Most dividends are paid in either cash or stock. In addition to regular dividends, special one-time dividends occur as a result of litigation wins, the sale or liquidation of a portion of the business or spin off businesses. Bookkeeping will record the binding liability of the dividend payout as of the declaration date. This number will include the total amount of the dividend pa
