What is dividend? Pronunciation and usage in English

dividend means . Learn how to pronounce and use dividend through vivid examples and easy-to-understand exercises.

Definition & pronunciation of dividend

dividendnoun

/ˈdɪvɪdend//ˈprəʊvəʊst/

Okay, let's break down how to pronounce "dividend." It's a tricky word! Here's a breakdown with phonetic spelling and tips:

Phonetic Spelling: /ˈdɪvɪdənd/

Here's a breakdown of each syllable:

  • di-: Pronounced like "dee" - as in "dictionary"
  • vi-: Pronounced like "vee" - as in "very"
  • dend: This is the trickiest part! It’s pronounced like "den-dent" – almost like you're saying "dentist" but with a shorter, sharper "dent" sound. Think of it as a quick, light "d" followed by a "dent" sound (like the beginning of "demon").

Putting it together:

Dee-vee-den-dent

Tips for getting it right:

  • Focus on the "dent" sound: Really practice that short, quick "d" followed by the "dent" sound. This is the key to a correct pronunciation.
  • Stress: The primary stress is on the first syllable ("di").
  • Listen to examples: The best way to learn is to hear it. Here are some resources:

Would you like me to:

  • Repeat the pronunciation slowly?
  • Give you some example sentences using "dividend" so you can hear it in context?

Usage and examples with the word dividend in English

Let's break down how to use the word "dividend" in English. It's a surprisingly specific word with a particular meaning, so understanding it is key.

1. Core Meaning: Payment to Shareholders

The primary meaning of "dividend" is a payment made by a company to its shareholders out of its profits. Think of it as a share of the company's success, distributed to those who own pieces of the company (shares).

  • Example: "Apple announced a dividend of $0.85 per share for the last quarter." (This means each share of Apple stock owner receives $0.85.)
  • Example: "Investors are hoping for a higher dividend yield from this stock." (Yield refers to the annual dividend payment as a percentage of the stock's price.)

2. Key Phrases and Sentences

Here are some common ways you’ll see "dividend" used:

  • Dividend yield: This is a crucial term. It's the percentage return on a stock investment based on its annual dividend payments.
    • Example: "The dividend yield on this bond is 4%, which is attractive."
  • Dividend payment: Refers to the actual cash or stock distribution.
    • Example: "The company made a dividend payment of $1 million last month."
  • Regular dividend: Indicates the dividend is paid on a consistent schedule (e.g., quarterly, annually).
    • Example: "The company pays a regular quarterly dividend."
  • Dividend reinvestment plan (DRIP): A plan where dividends are automatically used to purchase more shares of the company.
    • Example: "I've enrolled in the company's dividend reinvestment plan."

3. Less Common (But Related) Uses

  • Dividend (of a loan): Occasionally, you might hear "dividend" used to describe a payment made on a loan where the borrower is essentially receiving a return on their investment. This is less frequent than the shareholding meaning.
    • Example: "The bank offered a dividend on the loan, reflecting the interest earned." (Be aware this usage is less standard)

4. Synonyms (to help understand the nuances)

  • Distribution: A broader term for giving out something – it can cover dividends, royalties, or other forms of payment.
  • Payout: Similar to distribution, often used in the context of financial payments.
  • Share of profits: This is a more descriptive way to explain what a dividend is.

5. Important Considerations

  • Not all companies pay dividends. Many companies reinvest their profits back into the business for growth rather than distributing them to shareholders.
  • Dividends are taxable. The money you receive as a dividend is generally subject to income tax.

Resources for More Information:

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Synonyms for the word dividend

Practice with vocabulary dividend

Exercise 1: Fill in the blanks

  1. The company announced a substantial cash ________ for its shareholders following a profitable quarter.
  2. Investing in robust cybersecurity measures often pays a long-term ________ in terms of reputation and data integrity.
  3. Despite strong sales, the firm's net ________ was lower than expected due to rising operational costs.
  4. Many investors seek a high ________ on their capital, balancing risk with potential gains in the stock market.

Exercise 2: Choose the correct answer

  1. Which of the following terms refers to a portion of a company's earnings paid out to its shareholders? A) Revenue B) Capital gain C) Dividend D) Liability

  2. Choosing to implement energy-efficient technologies can offer significant long-term ______ for both the environment and operational budgets. A) expenditures B) subsidies C) dividends D) liabilities

  3. When a corporation distributes a portion of its net earnings to shareholders, it is typically referred to as a/an: A) merger B) dividend C) bond D) asset

  4. What financial metric represents the total amount of money a company generates from its sales before deducting operating expenses? A) Net income B) Gross revenue C) Profit margin D) Expenditure

  5. Which term describes the compensation or payment an employee receives for their work? A) Capital gain B) Remuneration C) Return D) Liability

Exercise 3: Rewrite the sentences

  1. Rewrite the sentence, starting with "The successful year allowed...": "After a successful year, the company paid out a sum of money from its profits to its shareholders."

  2. Rewrite the sentence using a form of "dividend": "The board decided that shareholders would receive a payment from the company's profits."

  3. Rewrite the sentence using a suitable replacement for "earnings" that relates to investment income, but do not use "dividend": "The financial institution offered a competitive rate of earnings on long-term deposits."

Answer:

Exercise 1: Fill in the blanks

  1. dividend
  2. dividend
  3. profit (or earnings)
  4. return

Exercise 2: Choose the correct answer

  1. C) Dividend
  2. C) dividends
  3. B) dividend
  4. B) Gross revenue
  5. B) Remuneration

Exercise 3: Rewrite the sentences

  1. The successful year allowed the company to pay a dividend to its shareholders.
  2. The board decided to issue a dividend to shareholders.
  3. The financial institution offered a competitive interest rate on long-term deposits.

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