On which date do dividends actually get paid to shareholders?

• A. Date of declaration
• B. Date of record
• C. Date of payment
• D. Date of issuance

Answer: (C)

Dividends are actually paid to shareholders on the date of payment. This is the date when the company disburses the dividend to shareholders who are entitled to receive it.

When a company declares a dividend, it formalizes its intention to pay a certain amount to its shareholders, which is known as the date of declaration. However, the payment does not occur on this date.

The date of record is the cutoff date established by the company to determine which shareholders are entitled to receive the dividend. Only those who own shares on this date will receive the dividend when it is paid.

The date of issuance, while relevant to the issuing of new shares, is not connected to dividend payments.

In summary, the date of payment is the definitive date when shareholders actually receive their dividends, making it the correct answer.