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Related to interim dividend: share premium
The declaration and payment of a dividend prior to annual earnings determination.
In the United Kingdom, a dividend declared and paid before the company has compiled or released its final financial statements for a given year. In the U.K., dividends are commonly declared twice per year; the dividend given before a company's annual meeting (at which financial statements are announced) is called the interim dividend. It is often, but not always, smaller than the final dividend.
A dividend declared before a firm's annual earnings and dividend-paying ability are accurately known by its management. An interim dividend is ordinarily paid in each of the first three quarters of the fiscal year. These payments are followed by a final dividend at the time that earnings can be accurately determined. Compare final dividend.