Definition of DIVIDEND in Black's Law Dictionary 4th Edition – Legal dictionary – Glossary of legal terms.
Definition of 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 falling to each. Hadley v. Commissioner of Internal Revenue, 36 F.2d 543, 544, 59 App.D.C. 139; Penington v. Commonwealth Hotel Const. Corp., 17 Del. Ch. 394, 155 A. 514, 517, 75 A.L.R. 1136; Lewis v. O'Malley, D.C.Neb., 49 F.Supp. 173, 179. In bankruptcy or insolvency practice, a dividend is a proportional payment to the creditors out of the insolvent estate. United States Fidelity & Guarantee Co. v. Sweeney, C.C.A.Mo., 80 F.2d 235, 241.
So-called dividend paid by life insurer is not in fact a. "dividend" but is the excess payment of premiums over actual cost. Scholem v. Prudential Ins. Co. of America, 15 N.Y.S.2d 947, 948, 172 Misc. 664.
"Dividends," common or preferred, are what shareholder earns from property without liability in case dividends are not paid. Commonwealth v. Philadelphia Rapid Transit Co., 287 Pa. 190, 134 A. 455, 458.
Cumulative Dividend
A dividend, usually preferred, which if not earned or paid, pursuant to agreement must be paid at some subsequent date. Lockwood v. General Abrasive Co., 205 N.Y.S. 511, 513, 210 App.Div. 141.
Dividend Addition
Something added to the policy in the form of paid-up insurance and does not mean unportioned assets or surplus. State Life Ins. Co. of Indianapolis v. McNeese, 106 Ind.App. 378, 19 N.E.2d 854, 857. The term does not refer to dividends added directly to the loan value. Anderson v. Liberty Life Ins. Co. of Topeka, 149 Kan. 447, 87 P.2d 499, 502.
Ex Dividend
A phrase used by stockbrokers, 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.
Extraordinary Dividends
See Extraordinary Dividends.
Liquidation Dividend
See Liquidation Dividend.
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. Jefferson Banking Co. v. Trustees of Martin Institute, 146 Ga. 383, 91 S.E. 463, 468.
Scrip Dividend
One paid in scrip, or in certificates of the ownership of a corresponding amount of capital stock of the cotnpany thereafter to be issued. Bailey v. Railroad Co., 22 Wall. 604, 22 L.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 a corresponding extent. Thomas v. Gregg, 78 Md. 545, 28 A. 565, 44 Am.St.Rep. 310. A stock dividend is not in the ordinary sense a dividend, which is a cash distribution to stockholders. of profits on their investments, but rather it is an increase in the number of shares declared out of profits, the increased number representing exactly the same property as was represented by the smaller number of shares. Booth v. Gross, Kelley & Co., 30 N.M. 465, 238 P. 829, 831, 41 A.L.R. 868. It is_ really nothing more than a process in corporation bookkeeping. Hayes v. St. Louis Union Trust Co., Mo.Sup., 298 S.W. 91, 98.
In Old English Law
The term denotes one part of an indenture, (q. v.).
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That's the definition of DIVIDEND in Black's Law Dictionary 4th Edition – Legal dictionary – Glossary of legal terms. Courtesy of Cekhukum.com.
