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 finance, a 'dividend payment' is a distribution of profits by a corporation to its shareholders. A financial analyst might say, 'Dividend payments are a sign of a company's financial health and its ability to generate cash flow.'

Practice Scenarios

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.

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.