Dividend
A sum of money paid regularly by a company to its shareholders out of its profits or reserves. It is a way for a company to share its financial success with those who invest in it.
Examples
3 of 5Investing in blue-chip stocks often provides a reliable monthly dividend.
Investing in blue-chip stocks often provides a reliable monthly dividend.
The board of directors has recommended a final dividend of 50 cents per share.
The board of directors has recommended a final dividend of 50 cents per share.
I'm using my dividends from the stock market to pay for my summer vacation.
I'm using my dividends from the stock market to pay for my summer vacation.
Antonyms
Word Family
Memory Tip
A Dividend is a 'Divide' of the 'End' profits.
Quick Quiz
The energy company has a high ______ yield, making it popular with retired investors.
Correct!
The correct answer is: dividend
Examples
Investing in blue-chip stocks often provides a reliable monthly dividend.
everydayInvesting in blue-chip stocks often provides a reliable monthly dividend.
The board of directors has recommended a final dividend of 50 cents per share.
formalThe board of directors has recommended a final dividend of 50 cents per share.
I'm using my dividends from the stock market to pay for my summer vacation.
informalI'm using my dividends from the stock market to pay for my summer vacation.
Modigliani-Miller theory explores whether dividend policy affects a firm's value.
academicModigliani-Miller theory explores whether dividend policy affects a firm's value.
The stock price dropped slightly after the company announced it would cut its dividend.
businessThe stock price dropped slightly after the company announced it would cut its dividend.
Antonyms
Word Family
Common Collocations
Common Phrases
pay dividends
to produce great benefits in the future
dividend reinvestment plan
using dividends to buy more shares automatically
interim dividend
a dividend paid before the full year's results are known
Often Confused With
A division is a part of a company; a dividend is a payment to shareholders.
Usage Notes
Usually used in plural when talking about general income from stocks, but singular when referring to a specific per-share amount.
Common Mistakes
Don't confuse the financial meaning with the mathematical one (the number to be divided).
Memory Tip
A Dividend is a 'Divide' of the 'End' profits.
Word Origin
From the Latin 'dividendum', meaning 'thing to be divided'.
Grammar Patterns
Cultural Context
In many cultures, 'dividend-paying stocks' are seen as the safest and most traditional way to build wealth.
Quick Quiz
The energy company has a high ______ yield, making it popular with retired investors.
Correct!
The correct answer is: dividend
Related Vocabulary
More business words
implement
B2To implement means to start using a plan, system, or law to make it happen or put it into action. It involves the practical step of carrying out a strategy or policy that has been officially agreed upon.
innovation
B2Innovation refers to the process of creating or implementing a new idea, method, or product that significantly improves an existing situation. It is commonly used in business and technology to describe breakthroughs that lead to growth or efficiency.
Revenue
B2The total amount of income generated by the sale of goods or services related to the company's primary operations. It is often referred to as the 'top line' as it sits at the top of the income statement before any expenses are deducted.
Stakeholder
B2A person, group, or organization that has an interest or concern in an organization. Stakeholders can affect or be affected by the organization's actions, objectives, and policies.
Asset
B2A useful or valuable thing, person, or quality. In finance, it specifically refers to a resource with economic value that an individual or corporation owns or controls with the expectation that it will provide a future benefit.
Liability
B2The state of being legally responsible for something. In a financial context, it refers to a company's financial debts or obligations that arise during the course of business operations.
Merger
B2A legal consolidation of two entities into one, often to create a larger, more competitive company. Unlike an acquisition, it is usually presented as a friendly agreement between equals.
Acquisition
B2The act of one company purchasing most or all of another company's shares to gain control of it. It can also refer to the act of gaining a new skill, habit, or item.
Expenditure
B2The action of spending funds, or the total amount of money spent by a person, company, or government. It is a more formal term than 'spending'.
Investment
B2The act of putting money, effort, or time into something to make a profit or get an advantage. In finance, it specifically refers to purchasing assets like stocks, real estate, or bonds.
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