Dividend Meaning: Definition, Examples, and Translations

Economics

• Dividends can be paid in cash or in additional shares of stock, known as stock dividends.
• Companies decide on dividends based on profits and their financial health, reflecting their growth strategy.

Investment

• Investors often seek dividend-paying stocks for steady income, especially during retirement.
• High dividend yields can attract investors, but they also carry risks if a company struggles financially.

History

• Historically, dividends date back to the Roman Empire when profits from resources were shared between investors.
• The practice of paying dividends became more regular with the establishment of joint-stock companies in the 17th century.

Cultural Impact

• In many societies, stable dividend payments are viewed as a sign of a company’s health and reliability.
• The concept of dividends has influenced storytelling and themes in literature, often reflecting on wealth and investments.

Main points about word origin

• Originates from the Latin word 'dividendum,' meaning 'that which is to be divided.'
• The term came into use in financial contexts around the early 16th century.

The term 'dividend' originated in late Middle English from the Latin word 'dividendum', which means 'thing to be divided'. Over time, the term evolved to refer to the share of profits distributed to shareholders. In mathematics, the term 'dividend' has been used to denote the number being divided since the 16th century.

See also: dividable, divide, divided, dividends, divider, dividers, dividing, divisible, division, divisive, divisor, divisors, misdivide, redivide, subdivide, subdivision, undivided.

With rank #4,591, this word represents useful upper-intermediate vocabulary. Understanding and using it will help you express more complex ideas effectively.

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