what s the difference between dividends and distributions 
both dividends and distributions serve as payouts for investors however they re taxed differently dividends are with after tax funds whereas distributions are with before tax funds the bottom linenot all distributions are made in cash some are made in kind the most common form of distribution in kind is when a company pays a dividend in stock rather than in cash distributions in kind can also be used in real estate trusts venture capital and private equity primarily for tax reasons 