Meaning & use

dividend

noun·Academicfinance

Last updated

UK/ˈdɪvɪdend/
US/ˈdɪvɪdend/

Meanings

  1. nouncountablefinance

    A share of a company's profit paid regularly to people who own its stock.

    Grammar: Countable: a company can pay one dividend or several dividends.

    Patterns

    • pay a dividend
    • receive a dividend
    • dividend per share

    The company pays a dividend of $2 per share every quarter.

    She receives dividends from her investments and uses them as extra income.

    After a strong year, the board decided to increase the dividend.

  2. nouncountablemathematicstechnical

    In mathematics, the number that is being divided by another number.

    Grammar: Countable: in 12 ÷ 3, 12 is the dividend and 3 is the divisor.

    Patterns

    • the dividend in a division problem

    In 20 ÷ 4, the dividend is 20.

    Write the dividend above the line and the divisor below it.

  3. nouncountablefigurative

    An unexpected benefit that comes from an action or situation.

    Grammar: Often used in the phrase 'a dividend of something' or 'pay dividends'.

    Patterns

    • a dividend of something
    • pay dividends

    Learning a second language early pays dividends later in life.

    The peace deal brought a dividend of stability to the region.

Word forms

pluraldividends

Common combinations

pay a dividend
The bank pays a dividend twice a year.
dividend yield
A high dividend yield can be attractive to investors.
declare a dividend
The board declared a dividend of 50 cents per share.
pay dividends
All that practice really paid dividends in the final match.

Synonyms and how they differ

payout
A general word for money paid out; 'dividend' is specific to shareholders.
return
Return is broader and includes any profit; dividend is one regular form of return.
bonus
A bonus is usually extra pay to employees, not a payment to shareholders.

Word family

divide verb
To separate into parts or share out.

Commonly confused: dividend or divisor? dividend or interest?

dividend vs divisor

In division, the divisor is the number you divide by; the dividend is the number being divided.

dividend vs interest

Interest is paid on loans or savings; a dividend is paid to shareholders from profits.

Practice

In the calculation 18 ÷ 6 = 3, which number is the dividend?

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