dividend

noun

div·​i·​dend ˈdi-və-ˌdend 

-dənd

1

: an individual share of something distributed: such as

a

: a share in a pro rata distribution (as of profits) to stockholders

Profits are distributed to shareholders as dividends.

b

: a share of surplus allocated to a policyholder in a participating insurance policy

2

a

: a resultant return or reward

our efforts are finally paying dividends

b

: bonus

3

a

mathematics : a number to be divided

b

: a sum or fund to be divided and distributed

dividendless

ˈdi-və-ˌdend-ləs 

-dənd-

adjective

Synonyms of dividend

• bonus
• gift
• pension
• contribution

Examples of dividend in a Sentence

Profits are distributed to shareholders as dividends.

the reward money was an unexpected dividend for our good deed

Recent Examples on the Web

The iShares 0-5 Year High Yield Corporate Bond ETF (SHYG) has a dividend yield of 7%. —Jason Gewirtz, CNBC, 9 Jan. 2026

These everyday opportunities pay great dividends back to our municipality. —Gian Carlo Pedulla, New York Daily News, 9 Jan. 2026

While previous administrations have flirted with pay caps—most notably former President Barack Obama’s proposal to limit contractor pay to $400,000—none have attempted to use their podium to unilaterally dictate the internal dividend and buyback policies of private companies. —Eva Roytburg, Fortune, 8 Jan. 2026

But what is the status of the dividend and is there a detailed plan in place to help make the payments a reality? —Time, 7 Jan. 2026

Word History

Etymology

Middle English divident, from Latin dividendus, gerundive of dividere — see divide entry 1

First Known Use

15th century, in the meaning defined at sense 1

Phrases Containing dividend

• peace dividend
• stock dividend

Rhymes for dividend

• apprehend
• comprehend
• condescend
• recommend
• resuspend
• amend
• append
• ascend
• attend
• backend
• befriend
• boyfriend

Kids Definition

dividend

noun

div·​i·​dend ˈdiv-ə-ˌdend 

-əd-ənd

1

: a sum to be divided and given out

2

: bonus

3

: a number to be divided by another

Legal Definition

dividend

noun

div·​i·​dend ˈdi-və-ˌdend 

1

: the part of corporate net earnings distributed usually periodically (as quarterly) to stockholders in the form of cash, additional shares, or property either as a set amount per share or a percentage of par value

— constructive dividend

: a benefit (as unreasonable compensation or use of corporate property) or transfer of funds from a corporation to a shareholder that is interpreted by a taxing authority as a dividend

— cumulative dividend

: a dividend distributed to preferred stockholders that is added to and paid with the next payment or future payments if not paid when due

— extraordinary dividend

: a dividend declared in addition to a regular dividend because of unanticipated profits or a nonrecurring increase of revenue

2

: a share of the surplus earnings of a mutual insurance company paid to policyholders either in the form of cash disbursements or through reduction of premiums

3

: a payment disbursed to investors from the income of a mutual fund