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Dividend

UK //ˈdɪvɪdɛnd// US //ˈdɪvɪdɛnd// Pronunciation

Definition

A sum of money paid regularly by a company to its shareholders out of its profits.

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In simple words: A payment made to shareholders from a company's profits.

Examples

• The company announced a higher dividend than last year.
• Shareholders eagerly awaited news of the dividend payments.
• Investors typically reinvest their dividends to grow their portfolio.
• Receiving a dividend can provide a steady income for retirees.
• Many companies offer dividends as an incentive to attract investors.

Usage notes

Typically used in financial contexts. It's appropriate in business discussions but less common in casual conversations.

Grammar pattern

pay + dividend

Memory hint

Think of 'divide' – profits are divided among shareholders.

Collocations

• declare a dividend
• receive a dividend
• increase the dividend
• annual dividend
• dividend yield

Synonyms

• distribution
• payout
• return
• profit share
• interest

Common mistakes

• Confused with 'diverse' vs 'dividend'
• Using 'dividend' as a verb instead of a noun
• Incorrectly assuming that all companies pay dividends