Final answer:
A Canadian-Controlled Private Corporation (CCPC) can pay an eligible dividend based on its retained earnings. The dividend payment is proportional to the shares owned by a shareholder. Stable companies like Coca-Cola often provide dividends which shareholders can receive over many years.
Step-by-step explanation:
A CCPC (Canadian-Controlled Private Corporation) can pay an eligible dividend to the extent it has sufficient retained earnings. When a company pays a dividend, it distributes a portion of its profits to its shareholders. The amount of dividend received by a shareholder is proportional to the number of shares they own. For example, with a dividend of 75 cents per share, an owner of 85 shares would receive a total dividend payment. Stable companies, such as Coca-Cola and electric utilities, often provide dividends to their shareholders as a form of profit-sharing, and these stocks can be held for many years as an investment.