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On the “date of record,” the dividends are assigned to the holders of the company’s stock.
On the “date of payment,” the company makes payment of the dividends.
However, for investors who are seeking cash dividend income from their stock holdings, a stock dividend could be considered undesirable.
Another negative effect of a company’s decision to issue a stock dividend is that it will possibly dilute the value of the shares, as there will be more shares outstanding in the market.
Such a reduction of retained earnings can be used as a means of limiting the possibility of future dividend payments.
At the end of each quarter, the company will declare its earnings in its quarterly financial statement.Companies generally pay dividends as a share of their profits each quarter, annually, or at a moment determined by the company’s board of directors.Most frequently, companies pay cash dividends, which are direct cash payments in accordance to how many shares a shareholder owns.At this time, EMRISE cannot determine if it can make another liquidation dividend distribution to its stockholders.If made, the amount of any such distribution would depend on a variety of factors including the payment of State and Federal taxes and other costs and liabilities associated with the dissolution of the Company.Liquidation dividend distributions are only being made to stockholders of record as of the close of business on July 7, 2015, in connection with the Company’s previously announced voluntary Plan of Dissolution (Plan) that was approved by its stockholders at a special meeting held on June 25, 2015.