Dividend: meaning, definitions and examples

Etymology

• 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.

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.

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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