dividend-payment

Vocabulary Word

Definition

'Dividend payment' refers when a company distributes some of its earnings to its shareholders. It's usually given as cash, and it's a way the company shares its success with those who invested in it.

Examples in Different Contexts

In investment, 'dividend payments' are important for investors seeking income from their stock holdings. An investor might explain, 'I focus on companies with a strong history of dividend payments, as they provide a steady income stream.'

Practice Scenarios

Accounting

Scenario:

The final quarter closed with excellent financial results. We need to discuss potential allocations to consider.

Response:

Yes, with our surplus, a higher dividend payment seems appropriate along with reinvestment in new projects.

Business

Scenario:

Our net profit is significantly higher this year. We should consider rewarding our loyal shareholders.

Response:

I agree, considering our profit margins, we can propose a generous dividend payment this year.