All termsInvesting, Income and ValuationWorth knowing
Distribution
A distribution is a payment or transfer of income, profits, capital or other value from an investment structure to its investors. Depending on the asset, distributions might come from rent, interest, dividends, realized gains or other cash flows.
Why it matters to you
Investors should understand where distributions come from rather than focusing only on the percentage being paid. A distribution funded by genuine investment income is economically different from one that includes a return of the investor's own capital.
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