Fundamental Glossary / Dividend Metrics
Final Dividend
The dividend recommended at the end of the year, usually paid after shareholders approve it at the AGM.
Formula
Recommended by the board, approved by shareholders, and then paid to holders on the record date.
What it means
The final dividend plus the interim dividends make the year's regular DPS.
Until the AGM approves it, a recommended final dividend is a proposal. The cash leaves after approval and after the payment date.
How to read it
A higher final dividend, with cover intact, is the board returning more of a completed year. Compare it with the earnings of that same year.
What to watch
Shareholders can, in principle, reduce a recommended dividend. In practice they rarely do. The binding constraint is profits, cash, and the Companies Act rules on what may be distributed.
This note explains the term. It is not a research recommendation, a target price, or a comment on any security. Ratios and regulatory thresholds change; use the latest filing or circular for a live figure.