1.
What is a dividend?
2.
What is an interim dividend?
3.
What is a final dividend?
4.
What is a scrip dividend?
5.
What is an unclaimed dividend?
6.
What are the modes of payment for dividends?
7.
What is a cash dividend?
8.
What journal entries are passed when a dividend paid in cash?
Dividend and Bonus Q&A FAQs
An Interim Dividend is a dividend payment made by a company between its annual general meetings (AGMs). It is also sometimes referred to as a "half-yearly" dividend.
Interim Dividends are paid to shareholders to return on their investment in the company between AGMs. They can also be seen to indicate to shareholders that the company is doing well and is generating Cash Flow.
This can vary from company to company, but typically Interim Dividends represent a smaller proportion of the total dividend payout than the final dividend.
This will vary depending on the company in question. In most cases, shareholders will be sent a cheque or have their dividend paid directly into their bank account. Some companies offer the option to reinvest dividends into more shares in the company, while others offer the option of receiving a cash payment or reinvesting into shares.
If you sell your shares after a dividend has been paid, you will still receive the payment. It will be paid to the person who owns the shares on the record date for the dividend payment. This is usually the day on which the dividend is announced.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.
