dividend

American  

[div-i-dend] / ˈdɪv ɪˌdɛnd /

noun

1. Mathematics. a number that is to be divided by a divisor.

2. Law. a sum out of an insolvent estate paid to creditors.

3. Finance.

   1. a pro-rata share in an amount to be distributed.

   2. a sum of money paid to shareholders of a corporation out of earnings.

4. Insurance. (in participating insurance) a distribution to a policyholder of a portion of the premium not needed by the company to pay claims or to meet expenses.

5. a share of anything divided.

   Synonyms:

   portion, allotment

6. anything received as a bonus, reward, or in addition to or beyond what is expected.

   Swimming is fun, and gives you the dividend of better health.

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dividend British  

/ ˈdɪvɪˌdɛnd /

noun

1. finance

   1. a distribution from the net profits of a company to its shareholders

   2. a pro-rata portion of this distribution received by a shareholder

2. the share of a cooperative society's surplus allocated at the end of a period to members

3. insurance a sum of money distributed from a company's net profits to the holders of certain policies

4. something extra; bonus

5. a number or quantity to be divided by another number or quantity Compare divisor

6. law the proportion of an insolvent estate payable to the creditors

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dividend Scientific  

/ dĭv′ĭ-dĕnd′ /

1. A number divided by another. In the equation 15 ÷ 3 = 5, 15 is the dividend.

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dividend Cultural  

1. A payment to the stockholders of a corporation from the corporation's earnings.

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Other Word Forms

• superdividend
  noun

Etymology

Origin of dividend

First recorded in 1470–80; from Latin dīvidendum “thing to be divided,” neuter gerund of dīvidere “to separate”; see divide

Explanation

A dividend is a bonus. If you buy a cup of coffee and the shop owner throws in a free muffin, that's a dividend. Your charm and loyal patronage are paying dividends! If you own stock and your company has had a good year, you’ll probably get a dividend — a share of the profit the company pays to shareholders. You've probably also heard the word dividend in math class: if you've got 300 divided by 50, 300 is the dividend (and 50 is the divisor).

Example Sentences

Most of the companies moving up to the Russell 1000 pay little or no dividends, he wrote at the time, with average dividend yields below 0.1%.

From Barron's • May 22, 2026

The proposed offer is 885 pence in cash per share, plus a 16.1 pence final dividend.

From The Wall Street Journal • May 22, 2026

Nvidia’s decision to increase its dividend and buybacks “does present interesting questions about uses of cash and what the company views as being the right trajectory,” Otto added.

From MarketWatch • May 22, 2026

Including a dividend of 0.71 euros that Recordati paid to shareholders this week, the offer values the company at 52 euros a share, the consortium said.

From The Wall Street Journal • May 22, 2026

The companies paid high dividends, and their shares were often costly to borrow: New Century, for instance, paid a 20 percent dividend, and its shares cost 12 percent a year to borrow.

From "The Big Short" by Michael Lewis

Related Words

• allowance
• bonus
• coupon
• gain
• premium
• proceeds
• remittance
• reward
• surplus