Definition

Noun: A dividend warrant is a formal financial document, typically a check or a similar order of payment, issued by a company to its shareholders. It serves as the official instrument for distributing a declared dividend payment to the rightful owner of the shares.

Examples

• The company secretary prepared and mailed the dividend warrants to all registered shareholders.
• Upon receiving his dividend warrant, he deposited it directly into his bank account.
• The dividend warrant clearly stated the payment amount per share and the total dividend due.

Advanced Usage

• Historical Context: While modern dividends are often paid via direct electronic transfer, the term "dividend warrant" originates from and still refers to the physical, warrant-like document that authorizes the payment. In contemporary usage, it can also refer to the electronic payment advice or notification.
• Legal Instrument: A dividend warrant functions as a negotiable instrument, similar to a check, which the shareholder can present for payment or deposit.

Variants and Related Words

• Dividend (n): The portion of a company's profits distributed to its shareholders.
• Warrant (n): A written order that serves as authorization, often for payment or an action.
• Dividend check (n): A common synonym, especially in American English, though "dividend warrant" is the more formal financial term.

Synonyms

• Dividend check
• Dividend payment order
• Dividend voucher

Related Phrases

• To issue a dividend warrant: The action of a company creating and sending out the payment documents.
  • The board resolved to issue the dividend warrants on the first of the month.
• To honor a dividend warrant: For a bank or paying agent to process and pay the amount specified on the warrant.
  • The bank will honor the dividend warrant upon verification.

Noun

1. an order of payment (such as a check payable to a shareholder) in which a dividend is paid