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Glite Dictionary
equalizing dividend

equalizing dividend

9.4
A payment to shareholders that makes up for losses from a changed dividend schedule
  • noun
  • Specialized
translation icon : dividendo de igualación
  • The board decided to issue an equalizing dividend after switching to annual payments.

Examples

  • Shareholders received an equalizing dividend to balance the reduced quarterly distributions.

  • An equalizing dividend may be declared to make up for changes in a company's dividend timetable.

  • The company announced an equalizing dividend to its shareholders.

  • Investors were pleased with the equalizing dividends this quarter.

  • An equalizing dividend is intended to compensate shareholders for changes in dividend payments.

  • To address the shift in its dividend policy, the company issued an equalizing dividend this year.

  • The board approved an equalizing dividend to offset the impact of a recent adjustment in distribution schedules.

Surface Forms

equalizing dividend singular
equalizing dividends plural

Morphology

equalize + dividend

The phrase is compositionally built from 'equalize' (make uniform/compensate) and 'dividend' (a payment), so a learner who knows both words can infer it is a dividend intended to equalize or compensate. However, the precise technical sense—compensating for losses from a change in dividend schedule—is domain-specific and not fully predictable to a B1 learner without financial background, so the transparency is only partial.

Etymology

Equalizing dividend comes from the idea of a special dividend used to equalize payments after a company changes its schedule. That's why it means a payment that balances losses caused by a change in the dividend schedule.