dividend

The distribution of part of the earnings of a company to its shareholders. The dividend is normally expressed as an amount per share on the par value of the share. Thus a 15% dividend on a £1 share will pay 15p. However, investors are usually more interested in the dividend yield, i.e. the dividend expressed as a percentage of the share value; thus if the market value of these £1 shares is now £5, the dividend yield would be 1/5 × 15% = 3%. The size of the dividend payment is determined by the board of directors of a ompany, who must decide how much to pay out to shareholders and how much to retain in the business; these amounts may vary from year to year. In the UK it is usual for companies to pay a dividend every six months, the largest portion (the final dividend) being announced at the company's AGM together with the annual financial results. A smaller interim dividend usually accompanies the interim statement of the company's affairs, six months before the AGM. Dividends are paid by dividend warrant in the UK. In the USA dividends are usually paid quarterly by dividend check. See also dividend cover, yield.
Interest payments on gilt-edged securities are also sometimes called dividends although they are fixed.

Accounting dictionary. 2014.

Synonyms:

Look at other dictionaries:

  • dividend — div·i·dend / di və ˌdend/ n 1: the part of corporate net earnings distributed usu. 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… …   Law dictionary

  • dividend — / dɪvɪdend/ noun a percentage of profits paid to shareholders ♦ to raise or increase the dividend to pay out a higher dividend than in the previous year ♦ to maintain the dividend to keep the same dividend as in the previous year ♦ to omit or… …   Dictionary of banking and finance

  • dividend — DIVIDÉND, dividende, s.n. Parte din profitul unei societăţi pe acţiuni care revine fiecărui acţionar în raport cu acţiunile pe care le posedă. – Din fr. dividende, lat. dividendus. Trimis de LauraGellner, 18.06.2004. Sursa: DEX 98  DIVIDÉND s. v …   Dicționar Român

  • Dividend — Div i*dend, n. [L. dividendum thing to be divided, neut. of the gerundive of dividere: cf. F. dividende.] 1. A sum of money to be divided and distributed; the share of a sum divided that falls to each individual; a distribute sum, share, or… …   The Collaborative International Dictionary of English

  • dividend — divìdend (dividȅnd) m <G mn nādā/ ēndā> DEFINICIJA mat. broj koji treba podijeliti; djeljenik, opr. divizor ETIMOLOGIJA vidi dividirati …   Hrvatski jezični portal

  • Dividénd — (lat.), s. Division …   Meyers Großes Konversations-Lexikon

  • Dividénd — (Dividendus, lat.), s. Division …   Kleines Konversations-Lexikon

  • dividend — Under the Bankruptcy and insolvency Act it refers to those monies paid by a Trustee in Bankruptcy to the creditors. (Dictionary of Canadian Bankruptcy Terms) United Glossary of Bankruptcy Terms 2012 …   Glossary of Bankruptcy

  • divìdend — (dividȅnd) m 〈G mn nādā/ ēndā〉 mat. broj koji treba podijeliti, djeljenik, opr. divizor …   Veliki rječnik hrvatskoga jezika

  • dividend — late 15c., from M.Fr. dividende a number divided by another, from L. dividendum thing to be divided, neut. gerundive of dividere (see DIVIDE (Cf. divide)). Mathematical sense is from 1540s. Meaning portion of interest on a loan, stock, etc. is… …   Etymology dictionary

  • dividend — [ dɪvɪdɛnd] noun 1》 a sum of money that is divided among a number of people, such as the part of a company s profits paid to its shareholders or the winnings from a football pool.     ↘an individual s share of this money. 2》 (dividends) a benefit …   English new terms dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.