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According to the IRS website, dividends are the most common type of distribution from a corporation. "They're paid out of the earnings and profits of the corporation. Dividends can be classified either as ordinary or qualified." (IRS.gov) This means that out of any kind of distribution from a company, dividend distributions are the most common.

When looking at different corporations that generally pay out dividends, we see some big names such as Microsoft, which started in 2003 and Apple who resumed paying dividends in 2012 after a long hiatus of not doing so (Waggoner, 2020). Within Microsoft's dividend policy we see that they did distribute these in the form of cash and share repurchases after that. "In 2010, the company decided to raise a debt in order to pay the dividends and to repurchase shares while avoiding an adverse impact on its debt rating" (ICMR).

There are some corporations that do not pay dividends because the directors believe that it is better to put the business's profits to work making the company itself more valuable. An example of a corporation that does this would be Warren Buffett's Berkshire Hathaway. (trendshare). Warren Buffett is therefore more concerned about keeping the corporation valid and focus more on its profits than sharing the dividends to its shareholders.