dividend

In business, the amount of money that company directors decide should be taken out of net profits for distribution to shareholders. It is usually declared as a percentage or fixed amount per share. The dividend, in the form of cash or shares, is recommended by the board and approved by the shareholders at the annual general meeting. A dividend payment is not guaranteed and may be withheld for many reasons including poor performance. Shares bought with the right to receive a declared dividend payment are said to be cum-dividend and those without the right are ex-dividend.

Most companies pay dividends quarterly; others once a year.

dividend

In mathematics, any number that is to be divided by another number. For example in the computation 20 ÷ 4 = 5, 20 is the dividend.