DIVIDEND: The portion of a corporation's after-tax accounting profit that's paid to shareholders or owners. Corporate managers usually try to pay the shareholders some minimum dividend that's comparable to returns from other financial markets--such as the interest on government securities or corporate bonds--to keep the owners from selling off the company's stock. That portion of after-tax accounting profit that's not paid out as dividends is typically invested in capital. See also | corporation | accounting profit | financial markets | government securities | corporate bond | corporate stock | undistributed corporate profits | retained earnings | corporate income tax | corporate profits distribution |
