Definition, Meaning & Synonyms

equity-dividend

noun

/ˈekwɪti ˈdɪvɪˌdɛnd/

Definition

A payment made by a corporation to its shareholders from its earnings, typically distributed in the form of cash or additional shares.

Examples

The company declared an equity dividend of $2 per share this quarter.
Shareholders were pleased with the increase in equity dividends compared to last year.
Receiving an equity dividend can significantly enhance an investor’s overall returns.

Meaning

Equity dividends represent a return on investment for shareholders based on the company’s profits. They are a way for companies to reward their investors.