A dividend refers to a portion of a profit that a company gives to its eligible shareholders. A company’s final dividend is decided by its board of directors and requires the shareholders’ approval before being declared in the annual general meeting.

Dividends can be paid quarterly, semi-annually, or annually,  based on the company’s profitability and internal approvals. They can be paid anytime during the financial year even in cases where the company has faced a loss subject to criteria stated in the Companies Act, 2013. If dividends are paid during the financial year, they are called interim dividends. Dividends paid at the end of the financial year after the company’s total earnings are called final dividends.

Note: 

• Dividends are not guaranteed and are subject to the company’s profitability and its decision on how to use its profits
• Dividend yield is calculated based on the face value of the company