What term refers to the portion of a corporation's profits that are paid to stockholders?

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1184746

2026-04-23 03:35

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The term that refers to the portion of a corporation's profits paid to stockholders is "dividend." Dividends are typically distributed in cash or additional shares and are usually paid on a regular basis, such as quarterly or annually. Companies may choose to reinvest profits back into the business instead of paying dividends, depending on their growth strategy and financial health.

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