Dividend

(Noun) | Pronunciation: /ˈdɪvɪˌdɛnd/

Definition & Meaning

The word “dividend” generally refers to a payment made to shareholders of a company from its profits, or a part of a sum that is divided among several recipients. It is commonly used in the context of business and finance.

• In finance – A payment made by a corporation to its shareholders, usually from its profits or reserves.
• In mathematics – The number being divided in a division operation.

💡 Did You Know? The concept of dividends dates back to the 19th century, and it is one of the most significant ways for companies to share profits with their investors.

Word Origin & History

• Etymology:
  • Derived from Latin “dividendum”, meaning “that which is to be divided”.
  • The term has been in use since the 17th century.
• Historical Usage:
  • The concept of dividends in business grew with the rise of joint-stock companies in the 16th and 17th centuries.
  • It has evolved to become a standard way for companies to distribute profits to their shareholders, often on a quarterly or annual basis.

📖 Example: “The company declared a dividend of $1 per share for this quarter.”

Synonyms & Antonyms

🔹 Synonyms

• Profit share
• Payout
• Distribution
• Return

🔻 Antonyms

• Loss
• Deduction
• Penalty

💡 Word Tip: When considering investments, dividends can be an attractive factor for investors looking for a steady income from their stock holdings.

Example Sentences

✅ Shareholders will receive a dividend at the end of the year.
✅ The company’s strong performance allowed them to pay a generous dividend.
✅ She reinvested her dividends into more company shares.
✅ The dividend for this quarter was higher than expected.
✅ The business model emphasizes dividend payments as a way to reward loyal investors.

📌 Challenge: Can you think of a situation where a high dividend might attract investors to a company?

Related Words & Phrases

• Profit-sharing
• Stockholders
• Earnings
• Return on investment (ROI)

Example: Some companies offer dividend reinvestment plans (DRIPs), where investors can reinvest their dividends to purchase more shares.

Usage Trends & Popularity

🧐 Trending Now: Companies in tech and growth sectors often focus more on reinvesting profits rather than paying high dividends, whereas mature companies tend to offer stable dividends.
📢 Discuss: Do you prefer stocks that pay dividends or those that reinvest profits for growth?

Fun Activities & Challenges

🔠 Word Puzzle: Unscramble this word → V D D E I N

🧠 Quick Quiz:
💭 Which of these is a definition of dividend?
A) A tax on income
B) A payment to shareholders ✅
C) A loan repayment

✍ Word Story Challenge: Write a short story where dividends play a key role in the plot!

User Contributions & Comments

💬 Share Your Thoughts: Have you ever invested in a stock because of its high dividends?
📢 Join the discussion below!

Advanced Learning & Fun Facts

Idioms & Phrases

• “Dividend yield” – A financial ratio showing the annual dividends paid by a company relative to its stock price.
• “Dividend growth” – Refers to the increase in the amount of dividends a company pays over time.

Financial & Investment Use

• In financial markets, dividends can be a way to evaluate a company’s health and profitability.
• Some companies offer special dividends, which are one-time payments, often due to extraordinary profits.

Famous Quotes

“The best way to own common stock is through a dividend reinvestment plan.” — Warren Buffett

💡 Did You Know? In some countries, dividends are taxed differently from regular income, often at a lower tax rate to encourage investment!