Extraordinary Dividend Law and Legal Definition
Extraordinary dividend is an irregular dividend that is not derived from profits arising out of the ordinary course of business but that is declared because of unusually large income or an unexpected increment in capital assets due to fortuitous conditions.
Extraordinary dividend is paid in cash or stock and constitutes a distribution or a capitalization of surplus profits remaining after distribution of ordinary dividends.
Extraordinary dividend is also termed as extra dividend, nonrecurring dividend, or special dividend.
