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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 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.


A quantity which is divided by another quantity in the operation of division.


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
References in periodicals archive ?
The deemed dividend election does not give rise to an election to bypass PTI.
Dividends: For period after 1996 and before 2000, rate is 10% if the beneficial owner is a company that owns at least 25% of the voting stock of the payer company (and has owned at least 25% for an uninterrupted period of two years prior to the year the dividend is paid) and the payer is not a RIC or a REIT.
Lill-Heidi Bakkerud, member of the board of directors, has been allocated 2 Dividend Shares in the Dividend Issue and her close associate has been allocated 2 Dividend Shares in the Dividend Issue.
The redemption did not materially reduce the ESOP's stake in Boise Cascade; thus, it was a dividend deductible under Sec.
24402 dividend deduction should be disallowed for all taxpayers.
Without such rises, and without any dividends, where is the value in buying a tech stock?
This past November, USG doubled the pace of its annual stock repurchases to 2 million while also hiking its per share dividend from 40 cents to 60 cents.
A dividend is more than a way for the CEO to share the wealth with investors.
subsidiary has paid more for services than an arm's-length amount, the foreign parent will not be considered to have received a dividend to the extent of the excess amount, and the withholding tax provisions of sections 881 and 1442 will not be applied.
To combat dividend stripping, Congress made the DRD unavailable unless the stock (on which the dividend was paid) had been held for more than 45 days.
REIT's are generally required to distribute at least 90% of their annual taxable income as dividend payments.
1, 1997 (years subsequent to the tax years at issue in Ceridian), the FTB had taken the position that as a result of Ceridian, CRTC [section]24410 was wholly inoperable, so that no DRD was permitted for dividends received from an insurance company; see Departmental Policy on Section 24410 Insurance Dividend Deductions, FTB Multistate Audit Program Mem.