Dividend

A fund to be divided. The share allotted to each of several persons entitled to share in a division of profits or property. Thus, dividend may denote a fund set apart by a corporation out of its profits, to be apportioned among the shareholders or the proportional amount faliing to each. In bankruptcy or insolvency practice, a dividend is 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. North Carolina R. Co., 76 N. O. 103, 22 Am. Rep. 671; De Koven v. Alsop, 205 Ili. 309, 68 N. E. 930, 63 In 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 Co.rp. (D. C.) 94 Fed. 109; In re Fielding (D. Ct) 96 Fed. 800.

In old English law. The term denotes one part of an indenture, (q. v.)

— Preferred dividend. One paid on the preferred stock of a corporation ; a dividend paid to one class of shareholders in priority to that paid to another. Chaffee v. Railroad Co., 55 Vt 129; Taft v. Railroad Co., 8 R. I. 310, 5 Am. Rep. 575.

— Scrip dividend. One paid in scrip, or in certificates of the ownership of a corresponding amount of capital stock of the companv thereafter to be issued. Bailey v. Rnilroad Co.., 22 Wall. 604, 22 In Ed. 840.

— Stock dividend. One paid in stock, that is, not in money, but in a proportional number of shares of the capital stock of the company, which is ordinarily increased for this purpose to & corresponding extent Kaufman v. Charlottesville Woolen Mills Co., 93 Va. 673, 25 S. El 1003; Thomas v. Gregg, 78 Md. 545, 28 Atl. 565. 44 Am. St Rep. 310

— Ex dividend. A phrase vised by stock brokers, meaning that a sale of corporate stock does not carry with it the seller's right to receive his proportionate share of a dividend already declared and shortly payable.