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.”

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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