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Dividends

The word dividend literally means "the thing which is to be divided among all", in this case all theshareholders. Dividends are a portion of the profits paid by a company to the shareholders. The dividends are one of two options for the company; the other option is to put it into retained earnings. Different classes of shares may contain different rights to dividends.

Dividends can also come in the form of a dividend re-investment plan, which instead of the money being paid out to the shareholders it is instead used to give more shares to the shareholders if available; the shares may then be sold at a later date.

Dividends are distributed amongst shareholders at the end of the financial year if the board judges the company to have made sufficient profit, these are final dividends.  Some companies pay interim dividends during the financial year if the board deems it to be prudent to do so.

MSP Secretaries Limited can arrange for all the necessary paperwork to be drafted for both interim and final dividends for your company.