dividend
Dividend (noun) means a payment made by a company to its shareholders out of its profits, usually on a regular schedule. Example: “The bank paid out a higher dividend this year after a strong set of results.”
How to use dividend
Learner’s notesIn plain EnglishMost commonly, the cash a company shares out with its shareholders — but it can also mean the number being divided in a sum, or a payoff from past effort.
Word forms
dividended past tense, dividends plural, dividends singular
Fill the gap
Can you complete this real example?
The bank paid out a higher _____ this year after a strong set of results.
Etymology
From Latin dīvidendum, "thing to be divided", the future passive form of dīvidō, "to divide".
Synonyms
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Frequently asked questions
What does “dividend” mean?
The word “dividend” means a payment made by a company to its shareholders out of its profits, usually on a regular schedule. In plain terms, most commonly, the cash a company shares out with its shareholders — but it can also mean the number being divided in a sum, or a payoff from past effort.
How do you pronounce “dividend”?
“Dividend” is pronounced DIH-vih-dehnd (/ˈdɪvɪdɛnd/ in IPA).
How do you use “dividend” in a sentence?
Here is “dividend” used in a sentence: “The bank paid out a higher dividend this year after a strong set of results.”
What part of speech is “dividend”?
“Dividend” is a noun.
Where does the word “dividend” come from?
The word “dividend” comes from Latin. From Latin dīvidendum, "thing to be divided", the future passive form of dīvidō, "to divide".
Is “dividend” a common word?
“Dividend” is an uncommon word in modern English.
How many meanings does “dividend” have?
“Dividend” has 3 distinct senses listed in this dictionary. The most common is: a payment made by a company to its shareholders out of its profits, usually on a regular schedule.
What is the difference between a dividend and a stock buyback?
A dividend is a direct payment a company makes to shareholders out of its profits, usually on a regular schedule. A buyback instead uses company funds to repurchase its own shares, which can raise the value of remaining shares rather than paying cash out directly.
In a division problem, what is the difference between the dividend and the divisor?
In mathematics, the dividend is the number being divided, while the divisor is the number it is being divided by. For example, in 12 ÷ 3, 12 is the dividend and 3 is the divisor.
What does it mean when someone says an earlier effort is "paying dividends"?
This is a figurative use of "dividend" meaning a worthwhile benefit that results from earlier effort, time, or investment. It extends the financial sense of a payout to any situation where past work is now producing a beneficial result.
Do all companies pay dividends to shareholders?
No, not every company pays a dividend. A dividend is a payment made out of profits, so companies that are not yet profitable, or that choose to reinvest earnings back into the business instead, may pay no dividend at all.