Shareholders will get return from the company that is called dividend. Dividend is a part of company's net income that is dedicated to shareholders. Investor or shareholders always wait dividend payment. The dividend also boost the share price as consequently it rise shareholder's return.

Only good company which has good financial statement report could pay dividend. The good company must have good net income trend. A new company usually does not pay dividend even they get high net income. The company need much money to widen the market and buy fixed asset or capital.

The dividend payment decision is on management hand. They have right to give or not the dividend. Certainly, they will consider the company profit, the economic condition, the shareholders, the market, etc.

The dividend payment into four process, such as:

1. Declaration date: The board of directors declares a payment of dividends.

2. Record date : The declared dividends are distributable to shareholders of record on a specific date.

3. Ex-dividend : A share of stock becomes ex-dividend on the date the seller is entitled to keep the dividend: under NYSE rules, shares are traded ex dividend on and after second business day before the record date.

4. Payment Date: The dividend checks are mailed to shareholders of record. (Ross, Westerfield, and Jaffe, 2002).

At least, there are two kinds dividend, shares and cash. Cash is the most delicious dividend because we directly get the money and can spend it to other things; on the other hand, we are hard to cash share dividend. We should sell first the shares. Share dividend is not cash and there is no cash outside from the company. They just release some paper only.

Some investor does not like share dividend because the share value usually decrease. It looks like zero sum games.