How does Kellogg’s dividend announcement impact its financial statements?

bowl of corn flakes
Corn Flakes are just one of Kellogg’s many product lines

On October 23, 2020, the Kellogg Company (brands include Kellogg’s, Pringles, Eggo, Cheez-It, and many others) made the following dividend announcement:

Kellogg Company (NYSE: K) today announced that its Board of Directors declared a dividend of $0.57 per share on the common stock of the Company, payable on December 15, 2020, to shareowners of record at the close of business on December 1, 2020.


  1. What is the impact on Kellogg’s balance sheet related to the dividend on the following dates:
    1. October 23, 2020
    1. December 1, 2020
    1. December 15, 2020
  2. On what date will a shareholder receive the cash dividend?
  3. On what date does the dividend become a liability for Kellogg’s?
  4. Does the dividend announcement or payment have an impact on net income? Explain.

About Dr. Wendy Tietz, CPA, CMA, CSCA, 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 Education.

2 Responses to “How does Kellogg’s dividend announcement impact its financial statements?”

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