Wednesday, August 17, 2011

What's the difference between an interim dividend and a final dividend?

Interim dividends are when a company pays a dividend before they calculate their earnings. Typical these are quarterly or monthly payments. Final dividend is a payout after all the financial statements are recorded and the company knows for sure its profits (or losses). This is usually an end of year payout. If dividends are paid in currency there is a good chance that a company could pay less than 1 dollar, euro, etc per year. The balance sheet will tell you this information under current liabilities.

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