noun

dividend

/ˈdɪvɪdend/ · say it: DIV·uh·end

a portion of profits paid to shareholders

In Banking & Finance

In more detail

1. (noun) a sum of money that a company pays to people who own shares in it

2. (noun) a number that is divided by another number in a division problem

Examples

1. The company announced a dividend of $2 per share for its shareholders.
2. In the division problem 20 ÷ 4, the number 20 is the dividend.

How to use dividend

Dividend has two main uses: in finance, it refers to the periodic payouts companies make to shareholders as a reward for investment; in mathematics, it is the number being divided in a division operation. The financial sense is far more common in everyday English and business contexts.

Common phrases

pay a dividend
declare a dividend
dividend payment
dividend yield
special dividend
monthly dividend

Synonyms

payout · distribution · share · return · profit

Word family

dividends (plural)

A common mistake

Learners sometimes confuse dividend with divisor; remember that the dividend is the number being divided (numerator position), while the divisor is the number you divide by (denominator position).

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