Dividend Distribution Dates

E

The "Payment Date" is the date that a company actually mails the dividend checks.

The correct answer is E. Payment Date.

The payment date is the specific date on which a company distributes dividends to its shareholders. It is the date on which shareholders receive the actual cash or stock payments as a return on their investment. The payment date is determined by the company's board of directors and is typically announced in advance.

To understand the other options and their meanings:

A. Ex-Dividend Date: This is the date on which a stock begins trading without the upcoming dividend. If an investor buys the stock on or after the ex-dividend date, they are not entitled to receive the dividend for that particular period. The ex-dividend date is usually set a few business days before the record date to account for the settlement period required for stock transactions.

B. Holder-of-Record Date: Also known as the record date, this is the date on which a shareholder must be registered as an owner of the company's stock to receive the dividend payment. The company maintains a list of shareholders as of this date and uses it to determine who is eligible for the dividend. Shareholders who are on record after this date will receive the dividend.

C. Declaration Date: The declaration date is the date on which a company's board of directors announces its intention to pay a dividend. During this announcement, the company typically declares the dividend amount and sets the other important dates such as the ex-dividend date, record date, and payment date.

D. Expiration Date: This term is generally used in the context of options or futures contracts and refers to the date at which the contract ceases to exist or expire. It is not directly related to dividend payments.

In summary, the payment date is the date on which a company actually distributes dividends to its shareholders, while the other options are associated with different stages and aspects of the dividend distribution process.