guaranteed dividend

USAGE SUMMARY

The phrase "guaranteed dividend" is correct and usable in written English.
It can be used in financial contexts to refer to a dividend that is promised to be paid to shareholders, regardless of the company's performance. Example: "Investors are attracted to stocks that offer a guaranteed dividend, as it provides a sense of financial security."

✓ Grammatically correct

Human-verified similar examples from authoritative sources

Similar Expressions

60 human-written examples

The Middlesbrough & Guisborough Railway, with two branches into the iron-rich hills, was approved by Parliament on 17 June 1852; Pease had to guarantee dividends to raise the finance needed.

Wikipedia

He also argues that announcing a guaranteed dividend amounts to share-price manipulation, breaking Chinese securities laws.

The Economist

Like the Goldman deal, the Bank of America infusion comes with a rich plum: a guaranteed dividend payout of about $300 million a year, whether the stock goes up or down.

The New York Times

But Mr. Buffett, it now appears, is getting cumulative preferred stock — so he gets a guaranteed dividend before any common-stock holders get a return.

The New York Times

Citigroup, which has received $45 billion in direct assistance and given the Treasury nonvoting preferred shares that pay a guaranteed dividend — is negotiating to swap the preferred shares for common shares that would give the government a stake as high as 40percentt.

The New York Times

The classic preferred, going back a century, was stock that had a fixed but not guaranteed dividend.

Forbes

Only the W&CR, which was the shortest line and was backed by the London and South Western Railway with a guaranteed dividend, was able to raise its funds without difficulty.

Wikipedia

Without guaranteed dividends, valuing the preference shares would be even harder — giving rise to a potential "complexity discount".

The New York Times

Goldman, Macquarie and two other creditors will get Eurotunnel convertible notes, gaining guaranteed dividends and 4 of 11 board seats.

The New York Times

David Einhorn, a well-known hedge fund manager, wants the company to return some of its cash to shareholders by issuing preferred shares that would pay guaranteed dividends.

The New York Times

David Einhorn, the hedge fund manager, has suggested that Apple issue a novel type of preferred stock intended to tap the foreign cash, which would pay guaranteed dividends.

The New York Times

Expert writing Tips

Best practice

Use "guaranteed dividend" when you want to emphasize the security and reliability of the dividend payment, especially in contexts where investors are risk-averse.

Common error

Avoid implying that a "guaranteed dividend" is completely risk-free. Always specify any limitations or conditions that could affect the guarantee, such as the financial stability of the guarantor or unforeseen market events.

Linguistic Context

The phrase "guaranteed dividend" functions as a noun phrase, where "guaranteed" modifies the noun "dividend", indicating a dividend payment that is assured or promised. Ludwig AI confirms that the phrase is grammatically correct.

Expression frequency: Missing

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Ludwig's WRAP-UP

In summary, "guaranteed dividend" refers to a dividend payment that is assured, providing investors with a sense of financial security. Ludwig AI confirms the grammatical correctness of the phrase. While there are no exact examples available, the phrase is most commonly used in professional contexts when discussing investment opportunities. Remember to clarify the terms of the guarantee and avoid implying it is entirely risk-free. Consider alternative phrases such as "assured dividend payment" or "fixed dividend payout" to add nuance to your writing.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

Assured dividend payment

Focuses on the act of payment being assured, instead of just the dividend itself.

Secured dividend

Emphasizes the security and safety of the dividend.

Guaranteed income stream from dividends

Highlights the continuous nature of the income derived from dividends.

Fixed dividend payout

Stresses that the dividend amount is predetermined and unchangeable.

Dividend with a guarantee

Reorders the words to emphasize the guarantee aspect.

Risk-free dividend

Implies that receiving the dividend carries no risk for the investor.

Dividend with assured returns

Combines the concept of dividends with the promise of assured returns.

Protected dividend

Highlights the protection against potential losses or non-payment.

Contractually obligated dividend

Implies that there is a legal obligation to pay the dividend.

Dividend backed by a guarantee

Emphasizes that the dividend is supported by a formal guarantee.

FAQs

How can I use "guaranteed dividend" in a sentence?

You might say, "The preferred stock offers a "guaranteed dividend", making it an attractive option for conservative investors".

What are some alternatives to "guaranteed dividend"?

Alternatives include "assured dividend payment", "secured dividend", or "fixed dividend payout", depending on the nuance you wish to convey.

Is a "guaranteed dividend" truly risk-free?

While a "guaranteed dividend" implies a higher level of security, it's essential to understand the specifics of the guarantee. Factors such as the financial health of the company providing the guarantee can still influence the actual payout.

What is the difference between "guaranteed dividend" and a regular dividend?

A regular dividend is subject to the company's performance and board decisions, whereas a "guaranteed dividend" is promised to be paid, often associated with preferred stock or specific contractual agreements, regardless of short-term profitability.