Premium vs Dividend - What's the difference?

premium | dividend | Related terms |

Premium is a related term of dividend.

As nouns the difference between premium and dividend

is that premium is bonus (extra amount of money given as a premium) while dividend is dividend.


Alternative forms

* (archaic)


  • Superior in quality; higher in price or value.
  • Noun

  • A prize or award.
  • Something offered at a reduced price as an inducement to buy something else.
  • A bonus paid in addition to normal payments.
  • The amount to be paid for an insurance policy.
  • An unusually high value.
  • (finance) The amount by which a security's value exceeds its face value.
  • Usage notes

    * (term) is much less common than (premiums), accounting for less than 1% of total usage in US (COCA) and 4% in UK (BNC).


    * (finance) discount

    Derived terms

    (Terms derived from the adjective or noun "premium") * at a premium * buyer's premium * premium bond * premium outlet



    (en noun)
  • (arithmetic) A number or expression that is to be divided by another.
  • In "42 ÷ 3" the dividend is the 42.
  • (finance) A pro rata payment of money by a company to its shareholders, usually made periodically (eg, quarterly or annually).
  • Hyponyms

    * regular dividend, special dividend

    See also

    * addition, summation: (augend) + (addend) = (summand) × (summand) = (sum, total) * subtraction: (minuend) ? (subtrahend) = (difference) * multiplication: (multiplier) × (multiplicand) = (factor) × (factor) = (product) * division: (dividend) ÷ (divisor) = (quotient), remainder left over if divisor does not divide dividend * numerator ----