Difference Between Interim Dividend and Final Dividend

Distinguish between Interim Dividend and Final Dividend –  Point of Discussion – HSC Board– Easy way to learn and memorized – class 12th – S.P – Notes of source of business finance – Difference between Interim dividend and Final dividend  , point of discussion Interim dividend and Final dividend –  Role of a Secretary in Capital Formation  – Secretarial Practice – Notes,  & Distinguish Between – according to the New Textbook for HSC Board – Difference between, Study material, studies notes, study notes.


Sr. NoDistinguish Between Interim dividendFinal dividend
1.MeaningInterim dividend is the dividend which is declared between two annual general meetings of a company.Final dividend is the dividend which is declared at the annual general meeting of the company.
2.declaredInterim dividend is declared when the company makes good profit in the first half of the financial year. I.e. declared before the end of the financial year.Final dividend is declared at the completion of financial year in Annual General Meeting of the company.
3.Rate of DividendThe rate of interim dividend is less than final dividend.The rate of final dividend is generally more than interim dividend.
4.Authorization of ArticlesNecessary for declaration of interim dividend.Not necessary for the declaration of final dividend.
5.Legal AspectsDeclaration of interim dividend becomes risky and illegal, if company incurs loss at the end of the year.Declaration of final dividend is always legal, as it is declared only after ascertaining (discover) the correct profit on the basis of the audited accounts.
6.Sources for declarationAn interim dividend is declared on the basis of the better financial prospective results may it to be quarterly, half yearly etc.There are number of sources available for declaring the final dividend. It can be declared out of current profits or profits of the previous years or out of reserves or out of capital profits out of the financial assistance specifically provided by Government for dividend.

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