Payments made out of a firm's earnings to its owners in the form of cash or stock are called:

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Dividends are payments made by a firm to its owners, usually as a distribution of the profits of the company. They can be paid in the form of cash or stock and are a way for owners to receive a return on their investment in the company. Distributions can refer to a wider range of payments, including dividends, interest payments, and capital gains distributions, but dividends specifically refer to payments made out of a company's earnings to its owners. Share repurchases involve a company buying back its own stock and payments-in-kind refer to non-cash payments. Stock splits involve dividing a company's existing shares into multiple new shares.

Payments Made Out of a Firm's Earnings to Its Owners