The last dividend that is paid after the end of a company’s financial year. This dividend is declared at the annual general meeting of shareholders and is declared by the shareholders only on the recommendation of the directors. This declaration usually takes place when management is able to measure rather accurately the company’s earnings and its dividend-paying ability. In this specific meaning, final dividend is also known as year-end dividend.

Final dividend also refers to the final profit distribution payment that a company in liquidation makes to its shareholders.