dividend

div·i·dend   (dĭv'ĭ-děnd')    n.   Mathematics A quantity to be divided. A share of profits received by a stockholder or by a policyholder in a mutual insurance society. A payment pro rata to a creditor of a person adjudged bankrupt. A share of a surplus; a bonus. An unexpected gain, benefit, or advantage. A share of a surplus; a bonus. An unexpected gain, benefit, or advantage. [Alteration (influenced by French dividende) of Middle English divident, from Latin dīvidēns, dīvident-, present participle of dīvidere, to divide; see divide.]

dividend

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

dividend 

Dividend

Distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. The amount of a dividend is quoted in the amount each share receives or in other words dividends per share.

Investopedia Commentary

Dividends may be in the form of cash, stock, or property. Most secure and stable companies offer dividends to their stockholders. Their share prices might not move much, but the dividend attempts to make up for this.

High-growth companies don't offer dividends because all their profits are reinvested to help sustain higher-than-average growth.

Related Links

How and Why Do Companies Pay Dividends?
The Importance of Dividends
Back In Vogue: Dividends
Declaration, Ex-dividend And Record Date Defined
Dividends, Interest Rates and Their Effect on Stock Options

See also: Cum Dividend, Declaration Date, Dividend Payout Ratio, Equalizing Dividend, Ex-Date, Ex-Dividend, Holder of Record, Payment Date, Record Date

Also spelled: dividentDPS

dividend

A share of a company's net profits distributed by the company to a class of its stockholders. The dividend is paid in a fixed amount for each share of stock held. Although most companies make quarterly payments in cash (checks), dividends also may be in the form of property, scrip, or stock. Unlike interest on a debt, dividends must be voted on by the company's directors before each payment. See also bond dividend, capital dividend, cash dividend, consent dividend, constructive dividend, declaration date, declared dividend, ex-dividend date, final dividend, illegal dividend, interim dividend, liability dividend, liquidating dividend, optional dividend, stock dividend.

Main Entry: div·i·dend
Pronunciation: 'di-v&-"dend
Function: noun
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

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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

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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

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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