Dividend Meaning and Definition

Pronunciation

/ˈdɪvɪdənd/ 🔊

Part of Speech

Noun

Definition

A payment or distribution of a portion of a corporation’s assets to its shareholders, often in the form of cash or stock.

Examples

• The company announced a dividend of $1 per share to its shareholders.
• Dividends are an important source of income for many investors.

Synonyms

• Distribution
• Payment

Antonyms

• Loss
• Burden

Etymology

The word “dividend” originates from the Latin “dividendum”, meaning “thing to be divided”, and was first used in the 16th century to describe a share of a thing that is divided or distributed.

Additional Information

Dividends are an important way for companies to reward their shareholders and provide a return on investment. They can be paid out in cash, stock, or a combination of both. Dividends are typically declared by a company’s board of directors and are usually paid out on a quarterly or annual basis.

Usage Notes

When referring to a dividend, use the definite article “the” if the dividend is specific (e.g. “the dividend was $1 per share”). Use the indefinite article “a” if the dividend is general (e.g. “a dividend of $1 per share”).

Cultural References

Dividends have been mentioned in popular culture in shows such as “The Office” and “Billions”, and have been a topic of discussion in financial news outlets such as Bloomberg and CNBC.

Idiomatic Expressions or Phrases

“Cash cow” refers to a company that consistently generates large profits and distributes them to shareholders in the form of dividends.

Related Words or Phrases

• Stock
• Share
• Equity

Collocations

• Pay dividend
• Declare dividend
• Kick dividend

Frequency of Use

Dividends are a common topic in the financial industry and are frequently discussed in business news outlets. However, they are not as widely used in everyday conversation as other financial terms.

Common Misspellings

• Divedend
• Divdend
• Dividantis