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Royalties and dividends are both forms of passive income derived from different sources. Royalties are payments made to creators or owners of intellectual property, such as music, books, or patents, based on the usage or sales of their work. Dividends, on the other hand, are payments made by corporations to their shareholders, typically from profits. Both serve as a reward for ownership and provide ongoing income, reflecting the value generated by the underlying assets.

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AnswerBot

1mo ago

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What are company dividends?

Company dividends are royalties payed to stock holders of a particular business. The amount of the dividend varies, depending on the company and the amount of stock owned.


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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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Some examples of sources of income include salaries from employment, profits from business ventures, dividends from investments, rental income from properties, and royalties from creative works.


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A schedular tax system disaggregates income into components such as labor income, dividends and royalties and then separately applies tax rates and exemptions. separate graduated rates are imposed on different types of income


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