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Related to dividend: Dividend yield


that part of the net earnings of a corporation that is distributed to its stockholders. Dividend disbursements are based on a percentage of the par value of the stock or are a certain sum per share of no-par-value stock. They become payable only when approved by the board of directors and are usually declared at regular intervals. Obviously, dividends should not be paid unless the company has accumulated a profit or surplus. In the United States, dividends may be paid in property of various kinds, including bonds and stocks of the company or stocks of other companies first acquired for other purposes, in notes, or in cash. Dividends may be paid in stocks when the accumulated profits of a company are to be retained for reinvestment in the business. Dividends in the form of notes, often called scrip dividends, are rare; they are only paid when the company has earnings that it expects to convert into cash before the notes are due. In Great Britain, dividends are payable only in cash. Liquidation dividends are the return of the capital of a business that is being terminated. Enterprises with diminishing assets, such as mines, issue a modified form of liquidation dividend. The dividend from preferred shares of stock is a fixed percentage that must be paid before the remainder of the profit is divided among other shares. If there are not enough profits to pay the whole dividend on preferred stock, future profits may be assigned to pay back those dividends before anything is paid on common stock. Preferred stock is ranked as first and second preferred, according to the priority of its obligations. Preferred dividends differ from interest on bonds in that there is no default if the former are not paid. The term dividend is also used to refer to a fractional payment of the amount owed by a bankrupt firm to a creditor.
The Columbia Electronic Encyclopedia™ Copyright © 2013, Columbia University Press. Licensed from Columbia University Press. All rights reserved. www.cc.columbia.edu/cu/cup/
The following article is from The Great Soviet Encyclopedia (1979). It might be outdated or ideologically biased.



the part of the profit made by a stockholding company that is distributed each year among the stockholders.

On the common shares the dividend is paid out in accordance with the amount of profit made by the corporation during a given year. On the preferred shares the size of the dividend is set beforehand in the form of a fixed percentage. With the growth of the share capital the total sum of the dividend also grows, and most of it goes to the large stockholders. The growth of dividends is one of the indicators of the increased income of the parasitic class of rentiers.

The Great Soviet Encyclopedia, 3rd Edition (1970-1979). © 2010 The Gale Group, Inc. All rights reserved.


A quantity which is divided by another quantity in the operation of division.
McGraw-Hill Dictionary of Scientific & Technical Terms, 6E, Copyright © 2003 by The McGraw-Hill Companies, Inc.


1. Maths a number or quantity to be divided by another number or quantity
2. Law the proportion of an insolvent estate payable to the creditors
3. Finance
a. a distribution from the net profits of a company to its shareholders
b. a pro-rata portion of this distribution received by a shareholder
4. the share of a cooperative society's surplus allocated at the end of a period to members
5. Insurance a sum of money distributed from a company's net profits to the holders of certain policies
Collins Discovery Encyclopedia, 1st edition © HarperCollins Publishers 2005
References in periodicals archive ?
Now the puzzle is, whether to pay the dividend or not?
A dividend of USD0.190 per share will be paid on 15 December to all shareholders of record as of 21 November and the ex-dividend date is 20 November 2017; a half yearly dividend of USD0.275 per share will be paid on 27 December to shareholders of record on 19 December and the ex-dividend date is 18 December 2017; and the dividend of USD0.190 per share to all shareholders of record on 29 December 2017 will be paid on 12 January 2018 and the ex-dividend date is 28 December 2017.
The stereotype for a high-dividend company is an established business that has reached maturity, and many older, stable stocks also offer dividend payouts high above the rate offered by Apple or ExxonMobil.
The above referred amendments in the transfer deed and issuance of directives by the SECP regarding payment of dividend through prompt credit in the shareholders' bank accounts will not only bring efficiency and hassle-free environment, but will also eliminate malpractices such as fraudulent encashment of dividend warrants, delays/loss of dividend warrants in postal service and minimizes the issuance of duplicate dividend warrants.
To help you choose among them, it's helpful to know how dividend funds can be sliced and diced.
*To better reflect its investment objective, the Fund's name changed from Matthews Asia Pacific Equity Income Fund to Matthews Asia Dividend Fund on 30 November 2009.
901(k)(1) generally prevents taxpayers from claiming an FTC relating to a foreign withholding tax on a dividend, unless they hold the stock for more than 15 days during a 31-day period beginning on the date which is 15 days before the date on which such share becomes ex-dividend with respect to such dividend.
The boards of directors of Corporate Property Associates 16--Global (CPA:16--Global), CPA:15, CPA:14, CPA:12 and Carey Institutional Properties Incorporated (CIP) announced the dividends for each company for the quarter ending June 30, 2004.
Another strategy is to transfer stock to family members in the 10% or 15% brackets, followed by dividend distributions to take advantage of the 5% rate (0% in 2008).
In a perfect market, where firms are transparent and investors can clearly see how a business will perform today and in the future, and where there are no taxes, bankruptcy costs, or transaction costs, dividend policy does not matter.