How are dividends declared different than dividends paid?

Dividends declared refer to the decision made by a company's board of directors to distribute a portion of its earnings to shareholders, which establishes a liability for the company. In contrast, dividends paid are the actual cash or stock distributions that shareholders receive on the specified payment date. While declared dividends indicate the company's intention to distribute profits, paid dividends reflect the execution of that intention. Essentially, a dividend can be declared but not yet paid until the payment date arrives.