An interim dividend is a dividend that a company pays during its financial year, before its annual results are known, usually alongside half-year or quarterly results. It is distinguished from the final dividend, which is proposed after the year end. Companies in the United Kingdom, India, Australia and many other markets commonly pay one interim and one final dividend each year, with the interim typically the smaller.
In many legal systems the directors may declare an interim dividend on their own authority, provided the company has sufficient distributable profits, while a final dividend must be approved at the shareholder meeting. An interim dividend can generally be withdrawn before payment, since it is not a debt until paid, whereas an approved final dividend is. Processing follows the usual timetable of announcement, ex-dividend date, record date and payment, as described under cash dividend processing.