Dividend

/ˈdɪvɪˌdɛnd/

Meaning & Definition

noun

A sum of money paid regularly by a company to its shareholders out of its profits (or reserves).

The company announced a quarterly dividend of $0.50 per share.

A number that is divided by another number in a division operation.

In the equation 15 ÷ 3 = 5, 15 is the dividend.

An advantage or profit gained from something.

Investing in education can yield significant dividends in the long run.

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

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.

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.

Chump change

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

Bonus

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