Definition of dividend
1 : an individual share of something distributed: such asa : 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
3a mathematics : a number to be dividedb : a sum or fund to be divided and distributed
dividendlessplay \-ləs\ adjective
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 of dividend from the Web
The IMF estimates that reform of SOEs could bring a $1trn economic dividend over the course of a decade.
With a recent price-to-earnings (P/E) ratio in the midteens and a growing dividend that recently yielded 2.1 percent, Tractor Supply is worth considering for your portfolio.
Apple’s decision in 2012 to begin paying dividends didn’t satiate shareholders—
But other U.S. and European leaders who have sought to cultivate personal ties with the former KGB agent at the helm of Russia for the past 17 years have frequently found that that doesn’t always pay political dividends.
The art of killing dividendsGeorgia-Pacific had been skimping on capital spending at its pulp mills for years, Jones said.
Dividends pay for college scholarships, grants and literacy programs.
The art of killing dividends Georgia-Pacific had been skimping on capital spending at its pulp mills for years, Jones said.
That paid obvious dividends for the squad during the season.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'dividend.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
Financial Definition of DIVIDEND
What It Is
How It Works
Let's assume Company XYZ issues some preferred stock with a $1-per-share cumulative quarterly dividend. Company XYZ also has some common stock outstanding on which the company paid a $0.50-per-share dividend last quarter.
Now let's assume a recession has taken a toll on Company XYZ's cash flow, and the board has decided to suspend dividend payments. Because the preferred shares have a cumulative dividend, once Company XYZ decides to resume making dividend distributions, it must first "catch up" on any missed dividends payments to the preferred shareholders (those outstanding the longest are paid first). Then it can resume making dividend payments to the holders of its common stock. It must do this even if it does not completely suspend the preferred dividends; reducing them creates a similar obligation.
Why It Matters
Preferred shares that have cumulative dividends often have slightly higher rates of return than straight preferred because cumulative preferred carries the added risk of possibly not receiving regularly scheduled dividend payments.
DIVIDEND Defined for English Language Learners
Definition of dividend for English Language Learners
finance : an amount of a company's profits that the company pays to people who own stock in the company
: an advantage or benefit that you get because of something you have done
mathematics : a number that is being divided by another number
DIVIDEND Defined for Kids
Definition of dividend for Students
1 : a number to be divided by another number
2 : an amount of a company's profits that is paid to the owners of its stock
Legal Definition of dividend
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
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