Dividend

From Latin dividendum, "that which is to be divided," from dividere, "to divide, distribute." The word names exactly what it is — the portion of earnings set aside to be divided among owners.

  1. noun · /DIV-ih-dend/

    A share of a company’s profits paid out to its shareholders, usually in cash.

    It shows one of two ways owning stock pays off: not just hoping the price rises, but receiving a regular cut of the profits along the way.

    The utility stock paid a modest dividend every quarter, which she reinvested.

    A dividend is income from your equity; equity is the ownership stake that entitles you to it.