dividend

[ˈdɪvɪdɛnd]

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

Synonyms for dividend

• bonus
• premium
• return
• yield

Phrases with dividend

• cash dividend

  a dividend paid in cash to shareholders

  Example

  The company declared a cash dividend of $0.50 per share.

• stock dividend

  a dividend paid in the form of additional shares of stock rather than cash

  Example

  The company issued a 5% stock dividend to its shareholders.

• special dividend

  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'

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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.'