What is Dividend?

A definition of Dividend

“A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. Companies often issue dividends in the form of cash payments, shares of stock, or other property.”

Dividend in Business Glossary - What is a Dividend?

Business Glossary > What is Dividend?


Examples of Dividend in a Sentence:

The board decided to issue a dividend to all shareholders this quarter.

Our company aims to increase its dividend payout next year.

A stable dividend can attract more investors to a company.

Why is Dividend Important in Business?

Understanding dividends is crucial for investors focusing on income-generating investments. Dividends represent a return on investment and can indicate a company’s financial health and profitability. By analyzing dividend patterns, investors can gauge the reliability and stability of potential investments.

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Associated Terms

Here are some associated business terms and synonyms for “Dividend”:

  • Profit Distribution
  • Stock Yield
  • Earnings Payout

Coca-Cola Dividend Example

Coca-Cola has a history of paying substantial dividends to its shareholders. The company prioritizes returning value to its investors, often through quarterly dividend payments, maintaining a strong track record of dividend increases over the years.

Final Notes on Dividend

When evaluating a company’s decision to declare dividends, investors should consider:

  • The financial stability of the company
  • Historical dividend patterns
  • The company’s growth strategy

Considering these elements will help investors make informed decisions about including dividend-paying stocks in their portfolios.


This has been a definition of Dividend meaning.

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