dividend Definition
a sum of money paid regularly (typically annually) by a company to its shareholders out of its profits (or reserves).
Using dividend: Examples
Take a moment to familiarize yourself with how "dividend" can be used in various situations through the following examples!
Example
The company paid a dividend of $2 per share.
Example
The dividend payout ratio is the percentage of net income that a company pays to its shareholders.
Example
The stock price dropped after the company announced a cut in dividends.
dividend Synonyms and Antonyms
Phrases with dividend
Example
The company declared a cash dividend of $0.50 per share.
Example
The company issued a 5% stock dividend to its shareholders.
a one-time dividend payment made by a company, usually in addition to regular dividends
Example
The company announced a special dividend of $1 per share.
Origins of dividend
from Latin 'dividendum', meaning 'thing to be divided'
Summary: dividend in Brief
A 'dividend' [ˈdɪvɪdɛnd] is a sum of money paid regularly by a company to its shareholders out of its profits or reserves. It can be paid in cash or additional shares of stock and is often used to reward investors for their ownership. Examples include 'The company paid a dividend of $2 per share.' and 'The stock price dropped after the company announced a cut in dividends.'
