Meaning & Definition of word "Dividend"

to

arrow

    Dividend

    /ˈdɪvɪˌdɛnd/

    noun:

    • 1. A sum of money paid regularly by a company to its shareholders out of its profits (or reserves).
      • Example: The company announced a quarterly dividend of $0.50 per share.
    • 2. A number that is divided by another number in a division operation.
      • Example: In the equation 15 ÷ 3 = 5, 15 is the dividend.
    • 3. An advantage or profit gained from something.
      • Example: Investing in education can yield significant dividends in the long run.

    Etymology

    From Latin 'dividendum', meaning 'something to be divided'.

    Common Phrases and Expressions

    cash dividend:

    A distribution of cash to shareholders.

    stock dividend:

    A dividend paid in the form of additional shares rather than cash.

    dividend yield:

    A financial ratio that shows how much a company pays in dividends each year relative to its share price.

    Related Words

    equity:

    The value of shares issued by a company.

    shareholder:

    An individual or institution that owns shares in a company.

    return on investment:

    A measure used to evaluate the efficiency of an investment.

    Slang Meanings of dividend

    Meaning: Chump change

    Example Sentence: I got a small dividend this quarter; it's just chump change.

    Meaning: Bonus

    Example Sentence: The dividend this year felt more like a bonus than a regular payout.