Dividend Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Dividend, written in plain English, along with examples of how it is used.

What is Dividend?

n. A share of profit that is distributed to shareholders for the amount of shares that are owned. The portion of profit realized is determined by the amount of a corporation’s shares of stock and rate of distribution that was approved by the board of directors or management. Stock dividends can take the form of stock shares or money.