INTERIM DIVIDEND Meaning and
Definition
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Interim dividend refers to the dividend payment declared by a company in the midst of its financial year, usually before the finalization of annual financial statements. It is a portion of the net profit earned by the company during a specific period, usually the first half of the year. The purpose of an interim dividend is to distribute profits to shareholders on a more regular basis, allowing them to enjoy the benefits of company success throughout the year rather than just at the end.
Unlike the final dividend, which is declared at the end of the financial year, the interim dividend is provisional and subject to change based on the company's performance in the second half of the year. It is often smaller than the final dividend as it represents only a portion of the profits earned in the first half.
The declaration and payment of an interim dividend is usually done by the board of directors, following applicable laws and regulations. Shareholders who are registered on a specified date, referred to as the record date or ex-dividend date, are typically eligible to receive the interim dividend.
Interim dividends are beneficial for shareholders in terms of providing a regular income stream and allowing them to participate in the company's profitability throughout the year. They can also indicate a company's financial strength and stability to potential investors.
Common Misspellings for INTERIM DIVIDEND
- unterim dividend
- jnterim dividend
- knterim dividend
- onterim dividend
- 9nterim dividend
- 8nterim dividend
- ibterim dividend
- imterim dividend
- ijterim dividend
- ihterim dividend
- inrerim dividend
- inferim dividend
- ingerim dividend
- inyerim dividend
- in6erim dividend
- in5erim dividend
- intwrim dividend
- intsrim dividend
- intdrim dividend
- intrrim dividend
Etymology of INTERIM DIVIDEND
The word "interim" in the phrase "interim dividend" is derived from the Latin word "interim", which means "in the meantime" or "temporary". It is used to describe something that is done or intended to be done during a transitional or temporary period.
In the context of finance, an "interim dividend" refers to a payment made by a company to its shareholders in the middle of its financial year. This dividend is declared and paid before the company's final accounts are prepared, usually after the first few months of the financial year. The word "dividend" itself comes from the Latin word "dividendum", which means "thing to be divided". It refers to a portion of a company's profits given to its shareholders as a distribution of earnings.
