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Many companies distribute profits to stockholders through cash dividends, deposited into investment accounts. However, owning a stock on the day a dividend is paid doesn't guarantee receipt. The day a dividend is announced, the day to be a shareholder to receive it, and the day of payment are different. Understanding these dates is key when investing in dividend stocks. The company declares the dividend on the declaration date, determining how much each shareholder will receive per share. Shareholders can still buy shares to qualify for the dividend before it is paid.