How Do You Spell ACCRUED DIVIDEND?

Pronunciation: [ɐkɹˈuːd dˈɪvɪdənd] (IPA)

The term "accrued dividend" is a financial concept that describes a type of dividend payment that has not yet been paid out to shareholders. The spelling of the word is as follows /əˈkruːd ˈdɪvɪdɛnd/. The first syllable is pronounced with a schwa sound, followed by the long "oo" sound in the second syllable. The final syllable is pronounced with the short "i" sound and the "d" sound is pronounced like a "t". Those unfamiliar with the term "accrued dividend" may find its spelling and pronunciation somewhat challenging to navigate.

ACCRUED DIVIDEND Meaning and Definition

1. Accrued Dividend is a term used in finance and accounting to describe the accumulation or accrual of dividend payments on a security or investment. A dividend is a distribution of a portion of a company's earnings to its shareholders, usually in the form of cash or additional shares of stock.

   When a company declares a dividend, it announces the intention to distribute a certain amount of money or shares to its shareholders on a specific date, known as the dividend payment date. However, the entitlement to receive the dividend may not be immediate. Shareholders who own the stock on the dividend record date, which usually occurs a few days before the payment date, are eligible to receive the dividend.

   Accrued Dividend refers to the portion of the dividend that has accumulated or accrued since the last dividend payment date, but has not yet been paid out to shareholders. It represents the amount that the shareholder is entitled to receive, but has not yet been distributed by the company.

   Investors who buy a stock between the last dividend payment date and the dividend record date will not receive the accrued dividend. Instead, the previous owner of the stock will be entitled to it. Therefore, accrued dividends are important to consider when buying or selling a stock, as they can impact the overall value and return on investment.

   In summary, Accrued Dividend refers to the accumulated dividend amount owed to shareholders who held the stock between the last dividend payment date and the dividend record date, but have not yet received the payment.

Etymology of ACCRUED DIVIDEND

The word "accrued" originated from the Latin word "accrescere", which means "to grow" or "to increase". "Dividend", on the other hand, has its roots in the Latin word "dividendum", which means "that which is to be divided".

In the context of finance and investments, "accrued dividend" refers to the portion of a company's earnings that is set aside to be distributed to its shareholders. The term "accrued" is used because these dividends accumulate or increase over time until they are paid out to investors. The earnings are divided or distributed among the shareholders, hence the use of "dividend" in the term.