Statement 1 Dividend is payable only in cash Statement 2 The dividend may be paid by cheque dividend...........

Companies Act-Phase (I & II) Paymentofdividends

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Statement 1: Dividend is payable only in cash.

Statement 2: The dividend may be paid by cheque / dividend warrant/ electronic mode.

Only statement (1) is correct

Only statement (2) is correct

Both the statements are correct

None of the statements is correct

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Explanation:

Dividends can be paid out in cash, by check or electronic transfer, or in stock, with the company distributing more shares to the investor. Cash dividends provide investors income, but come with tax consequences; they also cause the company's share price to drop.