What does "dividend" mean?

1. (company profit payment) a part of a company's profit that is paid to the people who own shares in it. 2. (mathematics) the number that is being divided by another number. 3. (to pay out profits) to pay out a share of profits to shareholders.

How do you use "dividend"?

Often used with the verbs 'pay', 'declare', or 'issue'. This verb use is rare outside of specialized accounting or legal contexts.

dividend

n. · v.

US //ˈdɪvɪˌdɛnd// UK //dˈɪvɪdənd// div·i·dend

1 company profit payment (n.)
C1 Advanced Technical Law

a part of a company's profit that is paid to the people who own shares in it.

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

Example

The company announced a higher dividend this year because profits were so strong.

Example

The board of directors voted to issue a special dividend to shareholders following the successful divestment of the firm's overseas subsidiaries.

Usage

Often used with the verbs 'pay', 'declare', or 'issue'.
2 mathematics (n.)
C2 Proficiency Technical Math

the number that is being divided by another number.

the quantity or number that is to be divided by another number, known as the divisor.

Example

In the calculation 20 divided by 5, the number 20 is the dividend.

Example

The student struggled to identify the dividend within the complex algebraic fraction, confusing it with the divisor below the line.
- divisor

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3 to pay out profits (v.)
C2 Proficiency Technical Formal Law

to pay out a share of profits to shareholders.

to distribute a portion of corporate earnings to shareholders as a dividend.

Example

The firm decided to dividend its excess cash rather than reinvesting it.

Example

The corporation chose to dividend the surplus capital to its investors to maintain a high stock valuation during the market downturn.

Usage

This verb use is rare outside of specialized accounting or legal contexts.
- distribute
- disburse

Origin

From Middle French dividende, from Latin dīvidendum (“thing to be divided”), future passive participle of dīvidō (“to divide”), by surface analysis, divide + -end.