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Dividends are typically paid to shareholders of a company as a distribution of profits, not directly to directors. However, if directors are also shareholders, they would receive dividends in proportion to their shareholdings. The decision to pay dividends is usually made by the board of directors, but the payments themselves are made to shareholders, not specifically to directors in their capacity as board members.

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How are dividends declared different than dividends paid?

Dividends declared refer to the decision made by a company's board of directors to distribute a portion of its earnings to shareholders, which establishes a liability for the company. In contrast, dividends paid are the actual cash or stock distributions that shareholders receive on the specified payment date. While declared dividends indicate the company's intention to distribute profits, paid dividends reflect the execution of that intention. Essentially, a dividend can be declared but not yet paid until the payment date arrives.


Are dividends declared by CEO's?

NO. They are declared by the board of Directors.


Are dividends a liability or an asset?

Dividends are considered a liability for a company once they are declared by the board of directors but not yet paid. This is because they represent an obligation to distribute a portion of the company’s earnings to shareholders. However, for shareholders, dividends can be viewed as an asset since they provide a return on investment and can contribute to cash flow. Thus, the classification of dividends depends on the perspective: a liability for the company and an asset for the shareholders.


What corporation gives out its profits as dividends paid to whom?

Corporations typically distribute profits as dividends to their shareholders, who are individuals or entities that own shares in the company. The decision to pay dividends, and the amount, is determined by the company's board of directors and is often based on the company's profitability and cash flow. Shareholders may receive dividends in cash or additional shares of stock, depending on the corporation's policies.


What is the share of the profits from a corporation that is paid to the stockholder is known as?

The share of the profits from a corporation that is paid to the stockholder is known as a dividend. Dividends are typically distributed on a per-share basis, meaning that stockholders receive a certain amount for each share they own. The decision to pay dividends and the amount is determined by the corporation's board of directors and can vary based on the company's financial performance and strategy.

Related Questions

What is the requirement for dividends for common stock to be paid in cash?

The requirement for dividends to be paid in cash to common stockholders is typically determined by the company's board of directors.


How are dividends declared different than dividends paid?

Dividends declared refer to the decision made by a company's board of directors to distribute a portion of its earnings to shareholders, which establishes a liability for the company. In contrast, dividends paid are the actual cash or stock distributions that shareholders receive on the specified payment date. While declared dividends indicate the company's intention to distribute profits, paid dividends reflect the execution of that intention. Essentially, a dividend can be declared but not yet paid until the payment date arrives.


Dividends are paid from?

Dividends are paid from corporate profits.


Dividends per share is equal to dividends paid....?

Dividends paid divided by the toal number of shares outstanding.


Are dividends declared by CEO's?

NO. They are declared by the board of Directors.


A corporation's dividends are declared by the corporation's?

A corporation's dividends are declared by the corporation's board of directors. The board evaluates the company's financial performance, cash flow, and future investment needs before deciding on the amount and timing of dividends. Once declared, dividends are typically paid to shareholders on a specified date. The decision to distribute dividends reflects the corporation's commitment to returning value to its shareholders.


How are dividends on common stock determined?

they are determined by the board of directors


How are the dividends on common stocks determined?

they are determined by the board of directors


How often are dividends paid?

Dividends are paid to shareholders by three types. They can either be paid annually, or biannually, or on quarterly basis.


What forms can dividends take?

A corporate board of directors has the authority to declare and pay dividends in the form of cash or stock.


To whom and how are dividends usually paid?

Dividends are usually paid to the investors of a company. These are paid on an annual or, more commonly, a quarterly basis.


A corporation gives out its profits as dividends paid to its?

Stockholders