• An interim dividend is usually one of two dividends paid by a company that generates returns to shareholders on a semi-annual basis.

  • Interim dividends are usually paid before the firm’s annual general meeting and the release of its final financial statements.
  • Final dividends are paid after the release of the company’s final financial statements.
  • As a result, final dividends are paid out of current earnings and interim dividends are paid out of retained earnings.
  • The board of directors of the company is responsible for declaring interim dividends, but it is up to shareholders to approve them or not.