Divisor vs. Dividend

Main Difference

The main difference between Divisor and Dividend is that the Divisor is a integer which can be wholly divided into another integer and Dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits.

• Divisor

  In mathematics, a divisor of an integer

  n

  {displaystyle n}

  , also called a factor of

  n

  {displaystyle n}

  , is an integer

  m

  {displaystyle m}

  that may be multiplied by some integer to produce

  n

  {displaystyle n}

  . In this case, one also says that

  n

  {displaystyle n}

  is a multiple of

  m

  .

  {displaystyle m.}

  An integer

  n

  {displaystyle n}

  is divisible by another integer

  m

  {displaystyle m}

  if

  m

  {displaystyle m}

  is a divisor of

  n

  {displaystyle n}

  ; this implies dividing

  n

  {displaystyle n}

  by

  m

  {displaystyle m}

  leaves no remainder.

• Dividend

  A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. When a corporation earns a profit or surplus, the corporation is able to re-invest the profit in the business (called retained earnings) and pay a proportion of the profit as a dividend to shareholders. Distribution to shareholders may be in cash (usually a deposit into a bank account) or, if the corporation has a dividend reinvestment plan, the amount can be paid by the issue of further shares or share repurchase.A dividend is allocated as a fixed amount per share, with shareholders receiving a dividend in proportion to their shareholding. For the joint-stock company, paying dividends is not an expense; rather, it is the division of after-tax profits among shareholders. Retained earnings (profits that have not been distributed as dividends) are shown in the shareholders’ equity section on the company’s balance sheet – the same as its issued share capital. Public companies usually pay dividends on a fixed schedule, but may declare a dividend at any time, sometimes called a special dividend to distinguish it from the fixed schedule dividends. Cooperatives, on the other hand, allocate dividends according to members’ activity, so their dividends are often considered to be a pre-tax expense.

  The word “dividend” comes from the Latin word “dividendum” (“thing to be divided”).