A dividend is a payment made by a corporation to its shareholders, usually in the form of cash or additional shares of stock. It represents a portion of the company’s earnings and is distributed among its shareholders on a pro rata basis.
Part of speech
share, portion, cut, pay, bonus, benefit, profit, return, yield.
Debt, Loss, Decrease.
- The company’s board of directors declared a dividend of $0.50 per share for the quarter.
- The startup’s early investors were rewarded with significant dividends when the company went public.
- The company’s management decided to increase the dividend payout ratio to attract more shareholders.
- John will receive a dividend payment of $500 for the shares he owns in the company.
The word “dividend” is primarily used in the context of corporate finance and investment. It commonly refers to a payment made by a company to its shareholders. The amount of the dividend is typically determined by the company’s board of directors, and is usually a percentage of the company’s profit that is paid out to shareholders in proportion to their ownership stakes.
The word “dividend” is derived from the Latin word “dividendum,” which means “thing to be divided.” The root word “divid-” means “to divide” or “to separate.” The suffix “-end” means “something that must be done.” Therefore, the term “dividend” refers to the portion of a company’s earnings that must be divided among its shareholders.
Some variations of the word “dividend” include “dividend yield,” which refers to the amount of dividend paid out per share relative to the market price per share. Another variation is “special dividend,” which refers to a one-time payment made by a company to its shareholders in addition to the regular dividend payments.
In addition, there are several prefixes that can be added to the word “dividend” to modify its meaning. For example, the prefix “un-” can be added to create the term “undivided,” which refers to a situation in which a company’s earnings are not distributed as dividends but are instead retained by the company for future growth. The prefix “re-” can be added to create the term “redividend,” which refers to a situation in which a company resumes paying dividends after a period of not paying them.
Overall, the usage of the word “dividend” is an important concept in the world of finance, investments and corporate management. It plays a significant role in determining the value of a company’s stock, and is a key factor in decisions made by investors and investment managers