DIVIDEND Meaning and
Definition
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A dividend is a distribution of earnings or profits that a corporation or company pays to its shareholders or owners. It represents a portion of the company's net income that is returned to the shareholders as a reward for their investment in the business. Dividends are typically distributed in the form of cash, but they can also be paid out as additional shares of stock or other property.
The payment of dividends to shareholders is usually approved by the company's board of directors and is often based on a predetermined dividend policy. The amount and frequency of dividends vary and are typically influenced by factors such as the company's financial performance, profitability, and future growth prospects.
Dividends serve as a means for companies to share their success with shareholders and to attract and retain investors. They can provide a regular income stream to shareholders, particularly to those who rely on their investments for financial stability. Additionally, dividends can be a strong indicator of a company's financial health and stability, as sustainable dividend payments often signify a well-performing organization.
Investors may choose to reinvest their dividends back into the company through dividend reinvestment plans (DRIPs) or use them for personal consumption, depending on their individual financial goals and circumstances. Dividend income is typically subject to income tax, and the tax treatment may vary based on the jurisdiction in which the shareholder resides.
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In life insurance, the amount of the profits of the company apportioned to the policy-holders yearly or at the end of any stipulated period; see tontine, semitontine, contribution, and deferred distribution.
A practical medical dictionary. By Stedman, Thomas Lathrop. Published 1920.
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A part or share of the profits or gains of a public company engaged in business of any kind, as a bank, or railway; the interest payable on any portion of the national debt or other stock; the part or share due to each creditor from funds realised from the sale of a bankrupt's effects, or from the payment of a composition; in arith., the number to be divided.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
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Other Common Misspellings for DIVIDEND
Etymology of DIVIDEND
The word "dividend" originated from the Latin word "dividendum", which is the gerund or supine form of the verb "dividere", meaning "to divide" or "to separate". In Medieval Latin, it evolved into "dividendus", the future participle form of "dividere", which means "to be divided or distributed". This Latin root reflects the basic meaning of dividend as a portion or share that is distributed or divided among shareholders or participants. The term was later borrowed into Middle English, where it specifically referred to a bonus or a portion of profits distributed to shareholders.
Idioms with the word DIVIDEND
Similar spelling words for DIVIDEND
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