Question

What is the term for a portion of a company's profit paid to common and preferred shareholders? For example: a stock selling for $20 per share has an annual ________ of $1 per share, yielding the investor guaranteed gains of 5% annually.

Answer 1

Dividend

Step-by-step explanation:

The dividend is the amount of the portion that should be paid to the common and preferred shareholders

Like in the question it is mentioned that the stock has been sold for $20 per share that contains the annual dividend of $1 per share where the investor guaranteed of gaining 5% on annual basis

So it is a dividend

The same is relevant and considered too