Difference Between Interim Dividend And Final Dividend

Difference Between Interim And Final Dividend

The main dissimilarities or difference between interim dividend and final dividend can be pointed out as follows:

1. Introduction

Interim Dividend: Distribution of dividend to shareholders before finalizing profit and determining full dividend

Final Dividend: Amount of dividend declared after finalizing the final profit and preparing financial statements at the end of the year

2. Time

Interim Dividend: It is declared before determining final earnings and preparing financial statements

Final Dividend: It is declared after computing final profit and preparing financial statements

3. Dividend Rate

Interim Dividend: Lower rate of dividend

Final Dividend: Higher rate of dividend

4. Revocation/Cancellation

Interim Dividend: It can be cancelled or varied by the directors

Final Dividend: It cannot be cancelled or varied after declaring the dividend

5. Declared By

Interim Dividend: Board Of Directors

Final Dividend: Annual General Meeting

Also Read:

6. Source Of Dividend

Interim Dividend: Undistributed past profits or reserves

Final Dividend: Profit of latest financial year

7. Mode Of Payment

Interim Dividend: Quarterly, half yearly or annually

Final Dividend: Annually

Interim Dividend Vs Final Dividend (Comparison Chart)

Basis For Difference	Interim Dividend	Final Dividend
Introduction	Distribution of dividend before determining final profit of the firm	Distribution of dividend after finalizing the profit of the firm
Time	Before preparing the financial statements	After preparing the financial statements
Rate Of Dividend	Lower	Higher
Cancellation	Can be cancelled	Cannot be cancelled
Declared By	Board of directors	AGM
Source	Past profit and reserves	Profit of latest period
Mode	Quarterly, half yearly or yearly	Annually

I hope this post is helpful to understand the difference between interim dividend and final dividend and to make comparison between them.

Main Differences