# dividend

/ˈdɪvɪˌdɛnd/ (US) · /dˈɪvɪdənd/ (UK)

Source: https://englishreference.com/word/dividend
Updated: 2026-06-20

## Senses

### 1. company profit payment

noun · CEFR C1 · Technical

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

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

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

### 3. mathematics

noun · CEFR C2 · Technical

the number that is being divided by another number.

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

- In the calculation 20 divided by 5, the number 20 is the dividend.
- The student struggled to identify the dividend within the complex algebraic fraction, confusing it with the divisor below the line.

### 4. to pay out profits

verb · CEFR C2 · Technical · Formal

to pay out a share of profits to shareholders.

For teachers: to distribute a portion of corporate earnings to shareholders as a dividend.

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

## Examples

- The company announced a higher dividend this year.
- Investors were pleased when the board of directors voted to increase the quarterly dividend despite the recent market downturn.
- While growth stocks reinvest all earnings into research and development, mature corporations often attract conservative investors by maintaining a consistent dividend policy even during periods of economic stagnation.

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From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.