What is Dividend?

Managing a corporation involves crucial decisions, and one of the most vital ones is distributing earnings to shareholders. This redistribution of accumulated wealth is typically done through dividends or share buybacks.

Dividends, in the context of a going concern, are commonly categorized as Interim, Final, or Special. A final dividend is paid if approved by the company during its Annual General Meeting based on the Board of Directors' recommendation. On the other hand, an interim dividend is declared by the Board of Directors between two Annual General Meetings, as authorized by the company's Articles of Association. A special dividend, however, is distributed based on the firm's unique intentions. It is typically non-recurring and relatively infrequent compared to regular dividends (Interim or Final).


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