Series 24: Dividend Payments

Dividend Payments

A dividend is a payment of a portion of a company’s earnings to its shareholders. Payments can be made in the form of cash or stock, and they are usually paid quarterly. Anyone buying or selling a stock around the time a dividend is being offered should know a few basics about the mechanics of its distribution. The Uniform Practice Code sets the rules for deciding when a buyer or seller receives a dividend distribution in the OTC market.