div·i·dend / ˈdiviˌdend/ • n. 1. a sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits (or reserves). ∎  a payment divided among a number of people, e.g., members of a cooperative or creditors of an insolvent estate. ∎  an individual's share of a dividend. ∎  (dividends) a benefit from an action or policy: persistence pays dividends. See also peace dividend.2. Math. a number to be divided by another number.

DIVIDEND

The distribution of current or accumulated earnings to the shareholders of a corporation pro rata based on the number of shares owned. Dividends are usually issued in cash. However, they may be issued in the form of stock or property. The dividend on preferred shares is generally a fixed amount; however, on common shares the dividend varies depending on such things as the earnings and available cash of the corporation as well as future plans for the acquisition of property and equipment by the corporation.

dividend Net earnings of a public company that is paid to its stockholders. The dividend is a percentage of the par value of the stock or is calculated on a per share basis. It is a share of the profits. In Britain, a dividend is paid in cash. In the USA, it may also be paid in other forms, such as bonds or stock.