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Interim Dividend

What are the purposes of issuing interim dividend. how much percentage of public company will go for issue interim dividend [most, avg,low ?].I want to know that this is very common to happen in companies or not. How many times in a financial year can issue interim dividend.


Pranav Connecting...

Pranav Connecting...

CA Inter

4K+

20-Apr-20

93

Answers (2)

Interim dividend is for returning money to shareholders. Most of large listed profit making entities issue both interim and public dividend. Almost all NSE 50 and BSE 30 companies do. It is common in large public companies with a diversified shareholding of retain, institutional share holders. Promoters if they are not in employment of the company, the only way they can earn money is through dividends. No limit on # of times an interim dividend can be declared. Some companies do it max 3 times, that too once in a while. Usually it is 1 . Any number more than 1 it is a waste of precious time of secretarial staff in processing dividend


Sriram Somayajula

Sriram Somayajula

Admin

20-Apr-20

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