What do the dates mean in the press release for Pier 1’s quarterly cash dividend announcement?

Pier 1 declared a quarterly cash dividend of $0.05 per common share on September 27, 2013. The press release read:

“Sep. 27, 2013– Pier 1 Imports, Inc. (NYSE:PIR) today announced that its Board of Directors declared a $0.05 per share quarterly cash dividend on the Company’s outstanding shares of common stock. The $0.05 quarterly cash dividend will be paid on November 6, 2013 to shareholders of record on October 23, 2013. As of September 27, 2013, approximately 104.5 million shares of the Company’s common stock were outstanding.”

Questions

1) What is the date of declaration?

2) What is the date of record?

3) What is the date of payment?

4) If a person owned Pier 1 stock from October 30, 2013, to December 1, 2013, would that person receive a dividend on his/her stock?

5) Assume a person purchased Pier 1 stock on September 1, 2013.  That person then sold the Pier 1 stock on October 29, 2013.  Would this person receive a dividend on the stock on November 6, 2013?

Instructor Resources

These resources are provided to give the instructor flexibility for use of Accounting in the Headlines articles in the classroom. The blog posting itself can be assigned via a link to this site OR by distributing the student handout below. †Alternatively, the PowerPoint file below contains a bullet point overview of the article and the discussion questions. †The YouTube video link below is a narration of the blog post article (no discussion questions are included in the YouTube video; those can be assigned separately.)

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 3.0 Unported License.

About Dr. Wendy Tietz, CPA, CMA, CGMA

Dr. Wendy Tietz is a professor of accounting at Kent State University in Kent, Ohio, USA. She is also a textbook author with Pearson Prentice-Hall.

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