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Dividend: Definition, Usage & Examples Explained (2 meaning)

Meaning 1:a share of profits (dividend)

dividend 🔊
/ˈdɪvɪdend/
n.
A part of a company's profit that is paid to the people who own shares in it.
Dividend illustration: smartphone notification showing dividend received from investment
a share of profits 🔊
/ə ʃeər əv ˈprɒfɪts/
n.
This refers specifically to a portion of a company's earnings distributed to its shareholders, typically paid quarterly or annually.
📁 Category:Social Economy 🔖 Level:Intermediate

📘 Details & Usage

📖 Root Explanation
From Latin 'dividendum' (thing to be divided), from the verb 'dividere' (to separate, to divide).
💡 Mnemonic
DIVIDE the company's profits among shareholders as a reward. Think of the 'divid-' in dividend meaning 'to divide.'
📖 Example
The company announced it would use its profits to pay a generous dividend to its shareholders this year. 🔊 The company announced it would use its profits to pay a generous share of profits to its shareholders this year.
🔗 Collocations
pay a dividend – To distribute a portion of profits to shareholders.
receive a dividend – To get a payment as a shareholder.
declare a dividend – To officially announce the payment of a dividend.
🔄 Synonyms
distribution (n.) – A general term for something that is shared out, often used in financial contexts for profit or asset sharing.
payout (n.) – An amount of money that is paid, especially as a share of profits or winnings.
return (n.) – A profit from an investment, which can include dividends and capital gains.
🚫 Antonyms
loss (n.) – A reduction in value or money, opposite of a financial gain or profit.
cost (n.) – An amount that must be paid or spent, representing an outgoing, not a distribution of profit.
expenditure (n.) – The action of spending funds, not distributing them as income.
📖 Cultural Story
The term entered English via French in the 15th century, originally meaning 'a number to be divided by another.' Its financial sense emerged in the 17th century, perfectly capturing the idea of profits being divided among owners. Today, 'dividend aristocrat' is a prestigious title for companies with a long history of increasing dividends.

Meaning 2:a benefit or reward (dividend)

dividend 🔊
/ˈdɪvɪdend/
n.
A good result or advantage that you get from an action, as if it were a bonus payment.
Dividend as benefit: visual metaphor of reward from hard work and investment
a benefit or reward 🔊
/ə ˈbenɪfɪt ɔː rɪˈwɔːd/
n.
This is a metaphorical use, describing a positive outcome or advantage gained from an earlier action or investment, similar to receiving a financial return.
📁 Category:Diet & Health 🔖 Level:Intermediate

📘 Details & Usage

📖 Example
All her hard work studying paid dividends when she passed the difficult exam with flying colors. 🔊 All her hard work studying provided a significant benefit when she passed the difficult exam with flying colors.
🔗 Collocations
pay dividends – To yield positive results or benefits in the future.
reap dividends – To obtain the benefits resulting from previous efforts.
long-term dividend – A benefit that materializes after a significant period of time.
🔄 Synonyms
benefit (n.) – An advantage or profit gained from something.
reward (n.) – A thing given in recognition of service, effort, or achievement.
return (n.) – The gain or profit from an investment, not necessarily monetary.
🚫 Antonyms
setback (n.) – A reversal or check in progress, opposite of a positive result.
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