Meaning & use
dividend payment
Last updated
Meanings
nouncountablebusinessfinance
an amount of money that a company pays to its shareholders out of its profits.
Grammar: Countable: a dividend payment, several dividend payments.
Patterns
- make a dividend payment
- receive a dividend payment
- a dividend payment of $1 per share
The company announced a dividend payment of $0.50 per share.
Shareholders will receive their dividend payment next month.
Regular dividend payments attract long-term investors.
noununcountablebusinessfinance
the act of paying dividends to shareholders.
Grammar: Uncountable when referring to the process: dividend payment is made quarterly.
Patterns
- dividend payment is made
- the timing of dividend payment
Dividend payment usually occurs four times a year.
The board discussed the schedule for dividend payment.
Word forms
| plural | dividend payments |
|---|
Common combinations
- make a dividend payment
- The firm will make a dividend payment in December.
- receive a dividend payment
- Investors receive a dividend payment each quarter.
- quarterly dividend payment
- The company offers a quarterly dividend payment.
- suspend dividend payments
- The airline had to suspend dividend payments during the crisis.
- a dividend payment of
- They announced a dividend payment of 25 cents per share.
Synonyms and how they differ
- dividend
- Dividend is the more general term for the sum paid; dividend payment emphasizes the act or instance of paying it.
- distribution
- Distribution is a broader business term for money paid out to owners; it can include other types of payments.
Word family
Commonly confused: dividend payment or interest payment?
dividend payment vs interest payment
Interest is paid on debt (like a loan or bond); a dividend is paid to shareholders from profits.
Practice
What is a dividend payment?
Choose one answer.
A dividend payment is money a company gives to its shareholders out of profits. Option An is wrong because shareholders receive money, not pay a fee. Option C describes borrowing, and option D describes a tax, not a dividend.
Make it your own
Write a sentence using “dividend payment”, then check it and compare it with the examples above.