Interim dividend

An interim dividend is a distribution to shareholders that has been both declared and paid before a company has determined its full-year earnings.  Such dividends are frequently distributed to the holders of a company's common stock on either a quarterly or semi-annual basis.

The board of directors may set an interim dividend at a lower amount than the dividend that it issues following the release of the company's annual financial results, so that the interim dividend does not impair the ability of the company to operate if the annual results turn out to be lower than initially expected.

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