The Board of Directors of a company will declare a dividend will be paid to shareholders. The Board decides a specific amount that will be paid for each outstanding share. The Board also declares the record date (the date you must be the registered owner of the stock) and the payable date (the date the dividend will be paid).
On the payable date if you are the registered owner of the stock, you will receive the cash or stock dividend per the company’s Board of Directors decision.