dividend[div′ə dend′, -dənd]
- An example of a dividend is an amount of money shared amongst many stockholders.
- An example of a dividend is a refund made to insurance policy holders from the the insurance company's profits.
- An example of a dividend is a bonus paid to customers as a special gift.
- the number or quantity to be divided
- a sum or quantity, usually of money, to be divided among stockholders, creditors, members of a cooperative, etc.
- an individual's share of such a sum or quantity
- a gift of something extra; bonus
- the refund made under some insurance policies to the insured from the year's surplus profit
Origin of dividend; from Classical Latin dividendum, that which is to be divided ; from dividendus, gerund, gerundive of dividere
- Mathematics A quantity to be divided.
- a. A share of profits paid to a stockholder or to a policyholder in a mutual insurance society.b. A payment pro rata to a creditor of a person adjudged bankrupt.
- a. A share of a surplus; a bonus.b. An unexpected gain, benefit, or advantage.
Origin of dividendAlteration (influenced by French dividende) of Middle English divident, from Latin dīvidēns, dīvident-, present participle of dīvidere, to divide; see divide.
dividend - Investment & Finance Definition
A distribution, typically quarterly, of a corporation’s earnings to its shareholders. Dividends can be paid in cash or stock. Sometimes, if a company has had a particularly good year, a special year-end dividend may be paid. If a company failed to make a profit, likely no dividend is paid. Some companies, such as growth companies, don’t issue dividends even when the company makes a profit. Their belief is that they can create a higher return for shareholders, through stock appreciation, by keeping the money and using it to expand the business. Often technology companies have this strategy.
dividend - Legal Definition