Dividend and Bonus Q&A

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on March 25, 2022

1. What is a dividend?

2. What is an interim dividend?

3. What is a final dividend?

4. What is a scrip dividend?

5. What is an unclaimed dividend?

6. What are the modes of payment for dividends?

7. What is a cash dividend?

8. What journal entries are passed when a dividend paid in cash?

Frequently Asked Questions

What is an Interim Dividend?

An Interim Dividend is a dividend payment made by a company between its annual general meetings (AGMs). It is also sometimes referred to as a “half-yearly” dividend.

How much money is typically paid out in Interim Dividends?

Interim Dividends are paid to shareholders to return on their investment in the company between AGMs. They can also be seen to indicate to shareholders that the company is doing well and is generating Cash Flow.

How much money is typically paid out in Interim Dividends?

How much money is typically paid out in Interim Dividends?

How can I claim my Interim Dividend?

This will vary depending on the company in question. In most cases, shareholders will be sent a cheque or have their dividend paid directly into their bank account. Some companies offer the option to reinvest dividends into more shares in the company, while others offer the option of receiving a cash payment or reinvesting into shares.

What happens to dividends if I sell my shares?

If you sell your shares after a dividend has been paid, you will still receive the payment. It will be paid to the person who owns the shares on the record date for the dividend payment. This is usually the day on which the dividend is announced.

True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

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