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Related to dividend: Dividend yield


The distribution of current or accumulated earnings to the shareholders of a corporation pro rata based on the number of shares owned. Dividends are usually issued in cash. However, they may be issued in the form of stock or property. The dividend on preferred shares is generally a fixed amount; however, on common shares the dividend varies depending on such things as the earnings and available cash of the corporation as well as future plans for the acquisition of property and equipment by the corporation.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.


n. a portion of profit, usually based on the number of shares of stock in a corporation and the rate of distribution approved by the Board of Directors or management, that is paid to shareholders for each share they own. Dividends are not always paid in money, but can be paid in shares of stock, known as a stock dividend. (See: corporation, shareholder)

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.


1 the income return received by a shareholder in respect of his investment. Unlike interest, which is payable irrespective of whether the company has made profits or not, dividends are payable only if so declared by the directors and are payable only out of profits (whether current profits or profits earned in previous years) available for the purpose. If there are no available profits there can be no payment of a dividend. Dividends must be declared by the ANNUAL GENERAL MEETING on the recommendation of the directors or by the directors themselves between such meetings.
2 the proportion of an insolvent estate payable to the creditors.
Collins Dictionary of Law © W.J. Stewart, 2006

DIVIDEND. A portion of the principal, or profits, divided among several owners of a thing.
     2. The term is usually applied to the division of the profits arising out of bank or other stocks; or to the division, among the creditors, of the elects of an insolvent estate.
     3. In another sense, according to some old authorities, it signifies one part of an indenture. T. L.

A Law Dictionary, Adapted to the Constitution and Laws of the United States. By John Bouvier. Published 1856.
References in periodicals archive ?
The choice to pay the dividend is also affected by the accessibility of profit in the organization and the capacity of the organization to gain extra income later.
Additionally, the company earlier released its regular monthly dividends of USD0.19 per share that will be paid on 15 February and 15 March 2018, to stockholders of record dates on 19 January and 22 February 2018, respectively.
But while that number should be discounted, it does indicate that telecom is a good sector to look at for solid dividend investing.
The SECP has thus provided a mechanism whereby all prospective shareholders by filling in the dividend mandate portion of the transfer will get their dividend direct in to their bank account.
"The bulk of the growth in China's dividends stems mostly from large, state-owned enterprises that have been listed during the past decade," said Jesper Madsen.
To address FTC abuses outside the dividend arena, Congress, as part of the American Jobs Creation Act of 2004, enacted Sec.
Permitted investments made during the year of the election qualify for the deduction, even if the expenditure occurred prior to the payment of the dividend and/or prior to the adoption of the domestic reinvestment plan.
The dividends are payable on July 15, 2004 to shareholders of record as of June 30, 2004.
CPA tax advisers should examine closely held corporate clients for E&P bailout opportunities at the temporarily reduced dividend rates.
By paying a dividend, the firm effectively puts its cash into investor's pockets.