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The portion corporate profits paid out of stockholders is A dividend is quarterly payment to stockholders of record, as a return on investment. Dividends may be in cash, stock, or property, and are declared from operating surplus. If there is no surplus, the payment is considered a return on capital. Dividend payments are, in effect, taxed twice-once when corporate profits are taxed and again when the dividend is received by a taxpaying stockholder. The corporate profits paid out to stockholders is called dividends.

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Q: What is the portion of corporate profits paid out to stockholders called?
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Profits paid to stockholders are called what?

Profits paid to stockholders are called dividends.


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"Royalties" is the word you are looking for. Dividends can be preset portion of profits of a company, attached to certain kinds of shares (often called "preferred" or "preference"), but they are not contractual as they flow from the Letters Patent or Articles which created the company and not from a contract.


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