Semiannual Definition - Investopedia

Semiannual describes something that is paid, reported, published, or otherwise takes place twice each year, typically once every six months. Business BusinessEssentials WhatIsSemiannual? Semiannualisanadjectivethatdescribessomethingthatispaid,reported,published,orotherwisetakesplacetwiceeachyear,typicallyonceeverysixmonths. Forexample,aten-yeargeneralobligationbondissuedbytheBuckeyeCity,OhioConsolidatedSchoolDistrictin2020willpayinterestonasemiannualbasiseachyearuntilthebond'smaturitydatein2030.Investorswhobuythesebondswillreceiveinterestpaymentstwiceineachofthoseyears;inthiscase,onceinJuneandonceinDecember.Theschooldistrictwillalsopublishasemiannualreportonitsfinances,onceinFebruaryandonceinNovember. KeyTakeaways Semiannualisanadjectivethatdescribessomethingthatispaid,reported,published,orotherwisetakesplacetwiceeachyear.Interestpaymentsonbondscanbedistributedsemiannuallyascancompanydividends.U.S.Treasurybondspayayieldsemiannually.Semiannualisoftenconfusedwiththewordbiennial,whichmeanssomethingthathappenseveryotheryear. UnderstandingSemiannual Semiannualissimplyawordthatdenotesanoccurrencetwiceayear.Forexample,acompanycouldhavecompanypartiessemiannually,acouplecouldcelebratetheirmarriagesemiannually,afamilycouldgoonvacationsemiannually.Anythingthathappenstwiceayearhappenssemiannually. Ifacorporationpaysasemiannualdividendtoitsshareholders,theshareholderswillreceivedividendstwiceyearly.(Acorporationcanchoosehowmanydividendstodistributeeachyear—ifany.)Financialstatementsorreportsarefrequentlypublishedonaquarterly(fourtimesperyear)basis.Itisrarethatcorporationspublishfinancialstatementsonlysemiannually.Theydo,however,publishanannualreport,whichperthedefinition,occursonceeveryyear. Semiannualisimportanttounderstandwhenpurchasingbonds.Abondisusuallydescribedintheyieldthatitpaysthebondholder.Forexample,a$2,000bondcouldhaveayieldof5%.Itisimportanttoknowifthis5%ispaidannuallyorsemiannuallytounderstandthepaymentyouwouldreceiveasthebondholder. Forexample,ifthebondpaidtheyieldannually,thebondholderwouldreceive$100ayear.Now,ifthebondpaidtheyieldsemiannually,thebondholderwouldreceive$200ayear.Thisisanimportantdistinctiontonotewhenpurchasingbonds. U.S.Treasurybondspayayieldsemiannually. Semiannualvs.Biennial Whilesemiannualisanadjectivethatdescribessomethingthathappenstwiceinasingleyear,biennialisawordthatdescribessomethingthathappenseveryotheryear.Understandably,biennialisoftenconfusedwiththewordbiannual,whichmeansthesamethingassemiannual:somethingthathappenstwiceperyear. ExampleofSemiannual CompanyABChasperformedwellinthelastfiveyears,continuouslymakingaprofitandgrowingearnings.Thecompanydecidesitwillstartpayingitsshareholdersdividendstodistributeaportionoftheearnings.ABC'smanagementdecidesitwilldistributeadividendof$0.50foreveryshare. Italsodecidesthatthedividendwillbedistributedonasemiannualbasis;theshareholderswillreceiveonedividendpaymentof$0.50twiceayearforatotaldividendamountof$1fortheyear.ThedividendswillbedistributedinJuneandinDecember. CompareAccounts AdvertiserDisclosure × TheoffersthatappearinthistablearefrompartnershipsfromwhichInvestopediareceivescompensation.Thiscompensationmayimpacthowandwherelistingsappear.Investopediadoesnotincludealloffersavailableinthemarketplace. Provider Name Description RelatedTerms ProRataorProportionateAllocation:WhatIsIt? Prorataisusedtodescribeaproportionateallocation.Itisamethodofassigninganamounttoafractionaccordingtoitsshareofthewhole. more Bond Abondisafixed-incomeinvestmentthatrepresentsaloanmadebyaninvestortoaborrower,ususallycorporateorgovernmental. more Swap Aswapisaderivativecontractthroughwhichtwopartiesexchangefinancialinstruments,suchasinterestrates,commodities,orforeignexchange. more WhatIsaSpilloverDividend? Aspilloverdividendisoneinwhichtheyearthattheshareholderreceivespaymentandtheyearthatthepaymentistaxablearedifferent. more WhatInvestorsNeedtoKnowBeforeInvestinginCallableBonds Acallablebondisabondthatcanberedeemed(calledin)bytheissuerpriortoitsmaturity. more WhatIsaSeriesIBond? SeriesIbondisanon-marketable,interest-bearingU.S.governmentsavingsbondthatearnsacombinedfixedinterestandvariableinflationrate(adjustedsemiannually). more PartnerLinks RelatedArticles MutualFundEssentials MutualFunds:HowTheyPayDividends RothIRA ShouldYouReinvestYourDividends? StockTradingStrategy&Education IsDividendInvestingaGoodStrategy? FinancialStatements WhyDoShareholdersNeedFinancialStatements? Laws&Regulations WhatRightsDoAllCommonShareholdersHave? Tools CompanyEarningsandEPS:EverythingInvestorsNeedtoKnow