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Dividends are a crucial part of an issuer's equity that is directly paid to its shareholders. These payments are typically made on common or preferred shares and are determined by the issuer or its representative. This includes details such as the amount, frequency, payable date, and record date. Keep in mind, the exchange where the issue is listed also sets the ex-dividend/distribution (ex-d) date for entitlement. However, it's important to note that an issuer is not legally obligated to pay dividends on either preferred or common shares.