payout

American  

[pey-out] / ˈpeɪˌaʊt /

noun

1. an act or instance of paying, expending, or disbursing.

2. money paid, expended, or disbursed, as a dividend or winning.

   He went to the betting window to collect his payout.

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verb phrase

1. 1. to distribute (money, wages, etc.); disburse.

   2. to get revenge upon for an injury; requite.

   3. to let out (a rope) by slackening.

Etymology

Origin of payout

First recorded in 1900–05; noun use of verb phrase pay out

Explanation

When money is handed over it's a payout. Not only does your favorite professional basketball player have a huge salary, he also gets a $50,000 payout if his team makes the quarterfinals! Payout usually refers to money paid as a prize, an investment dividend, or an insurance settlement. You'll probably get a large insurance payout after a tree falls on your house, but you'll have to wait a while. And don't expect any kind of payout from a lottery ticket — the odds of winning a jackpot are extremely low! Payout originally referred to oil wells: the cost of drilling was only worthwhile if the eventual payout would be high.

Example Sentences

Holders of Everlane common stock won’t receive a payout, Puck said, citing a note sent to shareholders Sunday morning.

From Los Angeles Times • May 19, 2026

It can, however, refuse to provide full transaction-level detail, but it should provide a date‑of‑death balance and a written explanation of any adjustments, pending transactions and/or fees that affected the payout.

From MarketWatch • May 19, 2026

The Federal Employees Retirement System remains a luxury, providing members a guaranteed payout based on years of service, the highest average of salaries, and accruals.

From The Wall Street Journal • May 14, 2026

For investors looking for a less extreme version of the dividend growth strategy with more a generous payout, he recommends the $125 billion Vanguard Dividend Appreciation ETF, which also has plenty of tech.

From Barron's • May 13, 2026

The father disapproved of the stock market, but the payout from his death funded his son into it.

From "The Big Short" by Michael Lewis