Legal Definitions - extra dividend

An extra dividend is a type of dividend paid by a company in addition to its regular dividend. It is usually paid when the company has exceptional profits during the dividend period. This type of dividend is also known as an extraordinary dividend or special dividend.

• A company declares a regular dividend of $0.50 per share and an extra dividend of $1.00 per share due to a significant increase in profits.
• During a particular quarter, a company earns a substantial amount of money and decides to pay an extra dividend of $2.00 per share to its shareholders.

These examples illustrate how an extra dividend is paid by a company when it has exceptional profits during a dividend period. It is an additional payment made to shareholders on top of the regular dividend.