Definition

A portion of profits that is distributed to shareholders or policyholders, often as a reward for their investment or participation.

Example

The company announced a dividend for its shareholders after a successful year.

Conversation

Did you hear about the company's dividend this year?

Yeah, I was really surprised by how much they paid out!

I know, it felt like a nice bonus for all the hard work we put in.

Exactly! It's always great to see those extra rewards.

Synonyms & Antonyms

Root Explanation

Dividend → It is formed from "dividendum" (from Latin, meaning that which is to be divided) and the suffix "-end" (indicating a noun). The word "dividend" refers to a portion of a company's earnings that is distributed to shareholders, essentially meaning a share of what is divided among them.

Memory Tip

Think of a portion that is 'to be divided' — that's what a dividend represents, a share of the profits that are divided among shareholders.

Visually Confused Words