• Unpaid dividends exist because there is a difference between the time a company announces its dividends and the time those dividends are paid.

  • During this time, the company will record any unpaid dividends in its books, but this balance will be liquidated after the dividend is paid.
  • It is important for investors to understand the key dates associated with the dividend payment process so that they are not confused about whether they will be eligible for a particular dividend payment.