upstream dividend

Definition

A share of earnings paid as dividends by a first or second tier subsidiary enterprise to the parent company. Upstream dividends represent a return on investment for a parent company that subsidizes a subsidiary's operation or provides working capital for expansion.

Use upstream dividend in a sentence

You may want to try and get a good upstream dividend coming your way that will add up over time.

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The upstream dividend was really interesting and we had to learn how it worked and everything to be able to understand it.

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My boss urged us to acquire a new subsidiary in Nevada because he believed that we would be able to convert all of the company's cash flow into an upstream dividend to finance our operations.

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