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Get Started in Shares by Glen Arnold

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A flow of cash income

It is a great feeling to open the post one morning and be told that your account has been credited with money or a cheque is in the envelope – certainly better than another bill! Your companies will usually send you such a letter twice a year at six monthly intervals.

The first is called an interim dividend or interim payment and is sent shortly after the end of the first six months of the company’s financial year (this is not the same as the calendar year because companies can choose the date for their year-end). The amount you receive depends on the number of shares you hold because all dividends are on a per-share basis; announced as pence or euro cents per share.

The second payment, final dividend, will arrive a few ...

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