A company that is making a profit often keeps a portion of its earnings to reinvest in the future of its business. The remaining profits will normally be given back to the owners of the company, its shareholders, as a dividend payment.
The dividend is often paid in two or more instalments over the year. The initial payments are called 'interim dividends' and the remainder, paid as a 'final' dividend, is approved by the shareholders at the Annual General Meeting (AGM).
