dividend types

Dividend is a part of the profits of the company earned by it, which is distributed to the shareholders.

As per the Provision of Section 43 of the Companies Act 2013, there are two kinds of Shares:

1). Equity Shares.
2). Preference Shares.

The Dividend is first given to the Preference Share holders at a fixed amount known as the Preference Dividend. After paying Preference Dividend, Equity Dividend is paid to the Equity Shareholders.

There are mainly two kinds of Dividend :

1). INTERIM DIVIDEND : paid during the year.
2). FINAL DIVIDEND : to be declared at the AGM of the company.

Warm Regards.