Definition, Meaning & Synonyms
dividend
Noun
/ˈdɪvɪˌdɛnd/
Definition
A dividend is a portion of a company’s earnings that is distributed to its shareholders.
Examples
- The company announced a dividend of $0.50 per share for its investors.
- Many investors rely on dividends as a source of income.
- Dividends can be reinvested to purchase more shares of stock.
Meaning
Dividends are payments made by a corporation to its shareholders, usually in the form of cash or additional shares of stock. They represent a share of the profits and are typically paid out on a regular basis.
Synonyms
- Distribution
- Profit share
- Payout
