DIVIDENDS Meaning and
Definition
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Dividends are regular payments that a company makes to its shareholders from the profits it has earned. These payments are made as a return on investment or as a way to distribute the company's profits back to its owners. Dividends are typically calculated and distributed on a per-share basis, meaning that the payment each shareholder receives depends on the number of shares they hold.
Dividends are one of the primary ways for shareholders to receive income from their investment in a company, especially if they do not plan on selling their shares. The amount and frequency of dividend payments may vary from company to company and can be influenced by factors such as the company's financial performance, its growth prospects, and its dividend policy.
Dividends can be paid in various forms, including cash, additional shares of stock, or even as property or assets. The payment of dividends is usually decided by the company's board of directors, who consider various factors, including the company's financial health, cash flow, and future investment needs.
Investors often view dividends as a sign of a company's stability and profitability, as consistent dividend payments indicate that the company is generating enough profits to share with its shareholders. Dividends can also play a role in determining the overall return on investment for shareholders, in addition to any capital gains they may receive from changes in the stock price.
In summary, dividends are regular payments made by a company to its shareholders as a way to distribute profits and provide a return on investment.
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Other Common Misspellings for DIVIDENDS
Etymology of DIVIDENDS
The word "dividends" originated from the Latin word "dividendum", which is the neuter gerundive form of the verb "dividere", meaning "to divide". In Roman law, "dividendum" referred to a specific amount divided among shareholders. Over time, the word evolved into "dividend" in English, which came to represent the distribution of profits or earnings to shareholders of a company.
Idioms with the word DIVIDENDS
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pay dividends
The idiom "pay dividends" means that an action or investment produces positive and beneficial results or rewards in the future. It denotes the notion that putting in effort, time, or money now will yield profitable outcomes or significant advantages later on.
Similar spelling words for DIVIDENDS
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