What is a payment from profits made by a company's Board of Directors to shareholders called?

The term for a payment made from a company's profits by its Board of Directors to shareholders is called a dividend. Dividends are typically distributed as a way to share the company’s earnings with its investors, reflecting the company’s profitability and the decision of the Board regarding the distribution of those profits. The amount paid out can depend on various factors, including the company's performance, cash flow, and future growth opportunities.

Dividends serve as an incentive for investment, as they provide shareholders with a return on their investment beyond the potential for capital gains from an increase in the share price. This payment is often a key consideration for investors when evaluating a company, especially for those seeking regular income streams from their investments.

The other terms do not accurately describe this specific transaction. For instance, shareholder interest could refer to the general concept of benefits or concerns of shareholders, corporate subsidy typically pertains to financial assistance provided by the government, and profit share often relates to a system where employees receive a share of the profits rather than distributing profits to shareholders.