Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Dividend definition

What does Dividend mean? A dividend is a distribution by a company to its shareholders, usually in cash but sometimes in shares (scrip/bonus) or in specie, representing a return on their shares from the company’s profits. Although “dividend” itself is a descriptive term, the legality of paying one is governed by company law: under the Companies Act 2006 (UK) and the Companies Act 2014 (Ireland), dividends may only be paid out of distributable profits, determined by reference to the company’s relevant accounts. In practice, boards may pay interim dividends; final dividends are recommended by the board and approved by shareholders, and cannot exceed...

Dividends by UK listed and AIM companies: LSE Dividend Timetable and Standards, FCA rules (LRs/DTRs), AIM Rules, CREST settlement, and investor/FRC guidance on policy, disclosure and payment practices

Published by a LexisNexis Corporate expert

Practice notes

STOP PRESS:

A sweeping overhaul of the UK listing framework came into force on 29 July 2024, removing the premium and standard listing segments and, in their place, creating a single listing class for equity shares issued by commercial companies. This commercial companies class is strongly disclosure-led and sits alongside other listing categories, including shell companies, secondary listing and closed ended investment fund categories, within the wider regime. A new UK Listing Rules sourcebook commenced to deliver and codify these reforms, and the former Listing Rules sourcebook was withdrawn in full. For more detail see Practice Note: Reform of the UK listing regime—fundamentals. This Practice Note describes the regime as it stood prior to 29 July 2024. A dividend is one form of distribution that a company may make to its members. Indeed, dividends are the most prevalent form of distribution made by a company. The requirements in Part 23 of the Companies Act 2006 (CA 2006), together with the common law rules on distributions (as adapted by those provisions), must be satisfied for a company to make a lawful distribution. For discussion of the law and practice relating to company distributions, see...

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Web page updated on 21/05/2026

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