noun · academic

dividend

UK/ˈdɪvɪdend/US/ˈdɪvədənd/DIV·i·dend

Band 7+speakingtask2

a part of a company's profits paid to shareholders

Examples

“The company announced a higher dividend for this year.”

“Long-term investors often value a steady dividend stream.”

“Paying dividends can signal a company's financial health.”

Band 8 sentence

“While reinvestment can foster long-term growth, returning dividends provides immediate income to shareholders and can attract conservative investors.”

Collocations

  • pay a dividend
  • dividend yield
  • declare a dividend

Word family

dividend (noun) noundividend-paying adjective

Common mistakes

interest→dividend

Say it for a higher band

5profit→6share→7+dividend

Synonyms

share of profits

Easily confused

profit

“The company's profit rose sharply, but it decided to reinvest rather than distribute dividends.”

Related words

buypaybalancecashpricespendchargepurchase

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