PAID DIVIDEND Meaning and
Definition
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The term "paid dividend" refers to a financial transaction in which a company distributes a portion of its earnings or profits to its shareholders. It is a way for a company to reward its shareholders for their investments and provide them with a return on their investment.
When a company declares that it will pay a dividend, it typically specifies an amount of money per share that will be distributed to shareholders. The dividend is usually paid out in cash, although in some cases it may be paid in the form of additional shares of the company's stock.
The payment of dividends is usually done on a regular basis, such as quarterly, semi-annually, or annually, depending on the company's policy. The decision to pay dividends is typically made by the company's board of directors, who take into consideration various factors such as the company's financial performance, cash flow, and future growth prospects.
Shareholders who hold shares of the company on the specified date of record are eligible to receive the dividend. The dividend payment is made to shareholders on the payment date, which is usually a few weeks after the record date.
Receiving a paid dividend is a way for shareholders to generate passive income from their investments in addition to any capital gains they may realize from selling their shares at a higher price. Dividends can be an attractive feature for investors seeking income, especially in periods of low interest rates or market volatility.
Common Misspellings for PAID DIVIDEND
- oaid dividend
- laid dividend
- -aid dividend
- 0aid dividend
- pzid dividend
- psid dividend
- pwid dividend
- pqid dividend
- paud dividend
- pajd dividend
- pakd dividend
- paod dividend
- pa9d dividend
- pa8d dividend
- pais dividend
- paix dividend
- paic dividend
- paif dividend
- pair dividend
- paie dividend
Etymology of PAID DIVIDEND
The etymology of the term "paid dividend" can be understood by breaking it down into two parts: "paid" and "dividend".
1. Paid: The word "paid" comes from the Old English word "padian", which means "to pay" or "to compensate". It ultimately derives from the Latin word "pacare", which means "to appease" or "to satisfy".
2. Dividend: The term "dividend" comes from the Latin word "dividendum", which is the gerundive form of the word "dividere", meaning "to divide" or "to share". In this context, the term refers to a share of profits that is divided among shareholders of a company.
So, when put together, "paid dividend" refers to the act of distributing a share of profits among shareholders as a form of compensation or payment.
