Which is correct, paid or payed? Most people will say paid; some would say that payed is archaic, or never correct. Microsoft agrees: as I write this, every occurrence of payed is getting flagged for misspelling.
I disagree.
Payed absolutely has 2 correct uses, as in (see here, here, or here):
- I payed out a length of rope.
- I payed out a bead of caulk.
And there seems to be some disagreement on this, but some sources agree that this is OK too :
The meaning in all 3 of those is that you released something that you had (rope, caulk or time), voluntarily but somewhat deliberately.
But, I teach economics and finance, and I think there’s a fourth meaning.
Suppose you buy (partial) ownership when you invest. As in buying stock instead of making a loan. When you do this, you may earn returns, but you give over the right to distribute the returns made from your investment to the manager of the investment. They do not have to release those returns back to you in full or on a regular basis.
So, since this is their discretion, I think "dividends are payed out" not "dividends are paid out".