how are dividends paid 
in general dividends are paid in cash dividend payments can also be reinvested in the stock distributing them to buy more shares who is eligible for stock dividends shareholders who buy or already own a company s stock before the ex dividend date will receive dividends on the date of payment a company s board of directors determines these dates the bottom linedividend irrelevance theory maintains that dividend payments don t impact a company s stock price the theory was developed by economists merton miller and franco modigliani both nobel laureates the theory is not without its critics for example some maintain that a company s ability to pay out regular dividends signals financial strength and sustainability to investors which can positively impact a stock s price 