A fund to be divided. The share allotted to each of several persons entitledto share in a division of profits or property. Thus, dividend may denote a fund setapart by a corporation out of its profits, to be apportioned among the shareholders, orthe proportional amount falling to each. In bankruptcy or insolvency practice, a dividendis a proportional payment to the creditors out of the insolvent estate. State v.Comptroller of State, 54 N. J. Law, 135, 23 Atl. 122; Trustees of University v. NorthCarolina R. Co., 76 N. C. 103, 22 Am. Rep. 671; De Koven v. Alsop, 205 111. 309, OSN. E. 930, 03 L. R. A. 587; Hyatt v. Allen, 56 N. Y. 553, 15 Am. Rep. 449; Cary v.Savings Union, 22 Wall. 38, 22 L. Ed. 779; In re Ft. Wayne Electric Corp. (D. C.) 94 Fed.109; In re Fielding (D. C.) 96 Fed. 800. In old English law. The term denotes one part of an indenture, (q. v.)

More On This Topic

Link to This Definition
Did you find this definition of DIVIDEND helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary