Dividend Payment Declaration Date-Board declares the dividend and it becomes a liability of the firm Ex-dividend Date Occurs two business days before date of record If you buy stock on or after this date,you will not receive the upcoming dividend Stock price generally drops by approximately the amount of the dividend Date of Record -Holders of record are determined,and they will receive the dividend payment Date of Payment-checks are mailed4 Dividend Payment n Declaration Date – Board declares the dividend and it becomes a liability of the firm n Ex-dividend Date q Occurs two business days before date of record q If you buy stock on or after this date, you will not receive the upcoming dividend q Stock price generally drops by approximately the amount of the dividend n Date of Record – Holders of record are determined, and they will receive the dividend payment n Date of Payment – checks are mailed