dividend

noun

div·​i·​dend ˈdi-və-ˌdend 

-dənd

1

: an individual share of something distributed: such as

a

: a share in a pro rata distribution (as of profits) to stockholders

Profits are distributed to shareholders as dividends.

b

: a share of surplus allocated to a policyholder in a participating insurance policy

2

a

: a resultant return or reward

our efforts are finally paying dividends

b

: bonus

3

a

mathematics : a number to be divided

b

: a sum or fund to be divided and distributed

dividendless

ˈdi-və-ˌdend-ləs 

-dənd-

adjective

Synonyms

• bonus
• cumshaw
• donative
• extra
• gratuity
• gravy
• gravy train
• lagniappe
• perk
• perquisite
• throw-in
• tip

Examples of dividend in a Sentence

Profits are distributed to shareholders as dividends.

the reward money was an unexpected dividend for our good deed

Recent Examples on the Web

Deere has hiked its dividend by 145%, most dramatically during wheat’s last big rally. —Brett Owens, Forbes, 19 Dec. 2024

Every dollar invested in Morgan yields high dividends for our economy, communities, students and society. —David K. Wilson, Baltimore Sun, 16 Dec. 2024

Applied Materials repurchased $3.8 billion of its common stock during the fiscal year and paid $1.2 billion in dividends to shareholders. —Quartz Bot, Quartz, 13 Dec. 2024

Netanyahu, for his part, has found that a maximalist military approach yields spectacular strategic dividends along with domestic political benefits. —Suzanne Maloney, Foreign Affairs, 10 Dec. 2024

Word History

Etymology

Middle English divident, from Latin dividendus, gerundive of dividere — see divide entry 1

First Known Use

15th century, in the meaning defined at sense 1

Phrases Containing dividend

• peace dividend
• stock dividend

Kids Definition

dividend

noun

div·​i·​dend ˈdiv-ə-ˌdend 

-əd-ənd

1

: a sum to be divided and given out

2

: bonus

3

: a number to be divided by another

Legal Definition

dividend

noun

div·​i·​dend ˈdi-və-ˌdend 

1

: the part of corporate net earnings distributed usually periodically (as quarterly) to stockholders in the form of cash, additional shares, or property either as a set amount per share or a percentage of par value

— constructive dividend

: a benefit (as unreasonable compensation or use of corporate property) or transfer of funds from a corporation to a shareholder that is interpreted by a taxing authority as a dividend

— cumulative dividend

: a dividend distributed to preferred stockholders that is added to and paid with the next payment or future payments if not paid when due

— extraordinary dividend

: a dividend declared in addition to a regular dividend because of unanticipated profits or a nonrecurring increase of revenue

2

: a share of the surplus earnings of a mutual insurance company paid to policyholders either in the form of cash disbursements or through reduction of premiums

3

: a payment disbursed to investors from the income of a mutual fund