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DictionarydividendShare of profits
noun

dividend

DIV-ih-dend/ˈdɪvɪdend/

A share of gains returned to someone.

The company pays each shareholder a dividend from its profits.

Small company storefront model at center sends three equal neat coin piles to three shareholders' open palms around it, profit distribution clear; tiny storefront only, no labels, arrows or financial figures.
Etymology
dividendLatinthing to be divided

A “thing to be divided” came to mean a portion or share of a divisible sum. The financial sense applies this idea to company profits distributed among shareholders.

In context

The Finance Storyteller1:20
Equity on a balance sheet goes down when the company is loss-making (losses “eat up” the equity), or when the company pays a dividend to its shareholders.
What is Equity

More examples

  • She reinvests her quarterly dividends in more shares.
  • The board announced a dividend of fifty cents per share.
  • Regular practice pays dividends when you perform under pressure.

Forms

dividend · dividends

Similar words

payout
Any money paid out, not necessarily a share of profits.
return
May include investment growth as well as distributed profits.
benefit
A broader advantage, whether financial, practical, or personal.