# payout

/ˈpeɪˌaʊt/ (US) · /pˈeɪaʊt/ (UK)

Source: https://englishreference.com/word/payout
Updated: 2026-08-08

## Senses

### 1. general payment

noun · CEFR B2

a large sum of money paid to someone, especially from an insurance company or a competition.

For teachers: a large disbursement of funds, often following a claim, a legal settlement, or a winning bet.

- The insurance company offered a large payout after the storm damaged their house.
- Following the successful litigation, the plaintiffs received a significant payout that covered all their medical expenses and legal fees.

### 2. dividends

noun · CEFR C1 · Technical

the amount of money a company pays to its shareholders from its profits.

For teachers: the distribution of a portion of a company's earnings to its shareholders, often expressed as a ratio or a total value.

- The company announced a higher payout this year because profits were so strong.
- Investors were pleased when the board approved a record dividend payout, reflecting the firm's robust cash flow and market dominance.

Usage: Often used in the phrase 'payout ratio' to describe the percentage of earnings paid to investors.

## Examples

- The lottery winner received a huge payout today.
- After the accident, the insurance company approved a significant payout to cover the driver's medical expenses and car repairs.
- Economists predicted that the merger would result in a substantial payout for shareholders, though the actual dividends were tempered by unexpected restructuring costs and legal fees.

---

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.