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Investing & the Stock Market vocabulary · Dividends & Corporate Actions

Dividend

Meaning in investing & the stock market, with examples

/ˈdɪvɪdend/nounCore term

In investing & the stock market, dividend means: A part of a company's profit that it pays to its shareholders, usually in cash and usually a fixed amount for each share.

In Turkish: temettü, kar payı

How it is used

Companies declare, pay, raise, cut or suspend dividends. Analysts talk about dividend per share, dividend yield and dividend policy. In the US many companies pay quarterly; in Turkey dividends are usually paid once or twice a year after the general assembly.

Example sentences

  1. The board proposed a cash dividend of 3 lira per share.

  2. Several banks cut their dividends to protect their capital during the crisis.

Common collocations

  • pay a dividend
  • declare a dividend
  • cash dividend
  • dividend per share
  • cut the dividend
  • dividend yieldA company's yearly dividend per share divided by its current share price, shown as a percentage. It shows how much income the share pays compared with its price.
  • ex-dividend dateThe first trading day on which a share is sold without the right to the next dividend. Buyers on or after this date do not receive that payment.
  • shareholderA person or organisation that owns one or more shares in a company and therefore owns part of it, with rights such as voting and receiving dividends.
  • bonus issueAn issue of new shares given free to existing shareholders in proportion to their holdings, usually by turning reserves or retained profits into share capital.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Dividends & Corporate Actions

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This page explains English vocabulary for learners. It is not financial advice.