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

• bonus
• cumshaw
• donative
• extra
• gratuity
• gravy
• gravy train
• lagniappe
• perk
• perquisite
• throw-in
• tip

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

These assets produce a revenue stream, typically from dividends, interest and realized capital gains. —Todd L. Ely, The Conversation, 24 Apr. 2025

Under the income test, a foreign corporation qualifies as a PFIC if 75% or more of its gross income in a tax year originates from passive income (e.g., interest, dividends, etc.). —Matthew Roberts, Forbes.com, 23 Apr. 2025

The company distributed dividends of 7.5 million euros last year, and acquired treasury shares for 14.4 million euros. —Martino Carrera, Footwear News, 17 Apr. 2025

Additionally, his propensity for turnovers — nine games this season with five or more — is somewhat unavoidable given his ball-handling responsibilities, but further tampering that down should pay huge dividends in the margins. —Brendan Marks, New York Times, 14 Apr. 2025

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