dividends - Master This Word
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dividends Word Meanings
- a payment made by a corporation to its shareholders
- a share of a company's profits
- something that is given or received as a dividend
dividends Example Sentences
Example sentences are the start of understanding. Don't rush to memorize. First feel how the word works in a sentence.
dividends Phonetic & Pronunciation
UK
/ˈdɪvɪdɛnd/
US
/ˈdɪvɪdɛnd/
dividends Word Etymology
di- = apart + vident = to divide, from Latin 'dividendum', meaning 'that which is to be divided'. Memory image: imagine a company slicing a pie of profits into pieces for each shareholder.
Note 1: These definitions and etymologies are not standard dictionary definitions, but extended explanations provided to help with memorization and understanding of the actual application of words. Through this background information, we strive to make words more vivid and easier to understand, and help you remember their meanings in real life.
Note 2: LexiTalk designs the learning flow around the linguistics principle of “Comprehensible Input.” When learners encounter material that is slightly above their level but still understandable from context, the brain naturally absorbs the language. That’s why we keep every word inside authentic contexts, using examples and associations to help you understand it and use it flexibly.
Read the FAQ explanation of Comprehensible InputReal Context
Dividend is a payment that a corporation makes to its shareholders, typically from the profits it has earned. It can be cash or stock, and many firms set a regular schedule, often quarterly, while others issue occasional special dividends. Companies decide how much to pay based on earnings, cash flow, debt levels, and policy, aiming to reward investors without compromising growth. The word also covers any share of profits distributed in other forms or through funds and partnerships. For investors, understanding dividends is important for measuring total return, yield, and tax implications, so you can compare stocks beyond price movement alone.
Usage Reminders
- • Dividend is money paid to shareholders, not the company’s total profit.
- • Use dividend yield to describe return on investment.
- • Distinguish cash dividend from stock dividend.
- • Some firms pay quarterly; others issue special dividends.
- • Not all companies pay dividends; growth firms may reinvest profits.
Common Misconceptions
- Dividends are the same as a company's profit
- All companies pay dividends every year
- Dividends are guaranteed and fixed
- Dividends are taxed the same everywhere
- Dividends come only as cash
Thinking Differences
In English, dividend is a precise financial term tied to corporate profits and investor returns; learners often confuse it with general profit or income, and may misapply it to non-corporate distributions. Think of a pie being shared among shareholders to remember the concept.
Learning Tips
- Learn common collocations: dividend, dividend yield, cash dividend, stock dividend, payout ratio, special dividend
- Read finance news to see dividends discussed in context
- Visualize the etymology: profits sliced like a pie among shareholders
- Differentiate cash vs stock dividends
- Note tax rules and how they affect net income from dividends
- Create flashcards with examples of sentences using dividend
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