Final Dividend
A dividend recommended by the board after the year's accounts are prepared and approved by shareholders at the annual general meeting.
Formula
Test: the dividend is recommended with the annual results and requires an ordinary resolution at the annual general meeting
Unit
₹
In depth
Because it requires shareholder approval, a final dividend cannot be paid until the annual general meeting has passed the resolution, which is why the payment date can be months after the announcement. Shareholders may reduce but not increase the recommended amount, so the board's recommendation is effectively the ceiling. The record date for a final dividend is set after the meeting, and entitlement is determined then rather than at announcement. A company skipping its final dividend after paying interims is making a statement about the year that the interims did not.
Worked example
A board recommends a ₹0.30 final dividend in May, shareholders approve it at the August meeting, and the record date follows. A buyer in June is entitled if they still hold on that record date.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Final Dividend” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.