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Dividend for Dummies

noun

pronunciation: 'dɪvɪ,dɛnd

What does Dividend really mean?

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Hey there! So, a dividend is like a little piece of the pie that a company gives to its shareholders. When a company makes a profit, it can choose to share some of that profit with the people who own its stock. That's where dividends come in. It's basically the company saying, "Hey, thanks for investing in us! Here's a little something for you."

There are actually a couple of different kinds of dividends. The most common type is a cash dividend, where the company gives out money to its shareholders. But there's also something called a stock dividend, where the company gives out more shares of its own stock instead of cash.

It's kind of like getting a little bonus from the company you invested in. It's their way of saying thanks for being part of the team and sharing in the success. So, when you hear the word "dividend," just think of it as a little reward that companies give to their shareholders when they do well. Cool, right?

Revised and Fact checked by Daniel Taylor on 2023-11-15 08:22:20

Dividend In a sentece

Learn how to use Dividend inside a sentece

  • When you share your cookies with your friend, you both get a dividend, which is the result of dividing the cookies between the two of you.
  • If you invest money in a company and they make a profit, they may give you a dividend, which is a part of their profit that you receive as a reward for investing.
  • When you divide 10 by 2, the dividend is 5 because that's the result of the division.
  • If you have a garden with 12 flowers and you want to plant them in rows of 3, the dividend is 4 because that's how many rows you can make.
  • When a family shares their allowance equally among the kids, each child gets a dividend, which is their share of the money.

Dividend Hypernyms

Words that are more generic than the original word.

Dividend Hyponyms

Words that are more specific than the original word.