What is the final dividend?

The final dividend is the amount of earnings remitted for investors after the company has aligned its accounting records for a fiscal year. In general, the amount of dividends is announced during the annual general meeting of investors, which takes place as soon as all financial records are prepared, audited and verified. In most cases, the dividend is the largest payment for the share paid at this time.

While the term is used in many countries, the primary use of final dividends is associated with corporations based in the UK, or one of the United Kingdom. Society in the UK, together with this type of annual dividends, also often publish what is called temporary dividend. It is a dividend that is calculated and passed on to investors after the company has prepared financial statements in the middle of the year. In general, the interim dividend is less than the final dividend, which is released at the end of the year.

Unlike the Provisional Accounting and Dividend, which is issued on the Wednesday of the Fiscal Year, the company's final accounting allows to find out the exact nature of any profits or losses generated in a given period. The company is therefore able to provide investors with specific information about what has not happened to the company this year. For this reason, many investors place more emphasis on the final and complete accounting, which is submitted to the annual General Meeting, and less to find out temporary accounting.

The amount of final dividends is usually presented as a fixed amount per share. When the final dividend rate is announced at the General Meeting or a specially called meeting of investors shortly after the General Meeting, each investor knows what type of dividend to expect for each share of holding. Payments together with support documents are usually sent to each investor of the company and act as a confirmation of the announcement made at the annual meeting.

Investors sometimes project the amount of final dividends in their investment strategy. If a certain problem with the shares has lost considerable land in the last year or two, the investor may calculate the expected dividend that will be obtained by the end of the year and compare it with other investment options. This is especially true if there are no indications that shares in the near future recover. If the investor finds a suitable compensation, he can sell shares and use revenues to ensure an investment that shows the promise of a permanently higher return rate.