What is provided to shareholders when ordinary yield exceeds net profit?

When ordinary yield exceeds net profit, it indicates that the company is distributing more to its shareholders through dividends than it has earned in profit during that particular period. This situation typically arises from retained earnings accumulated from previous years. Thus, the correct answer points to the profit retained from previous periods, which allows the company to pay dividends even when current net profits are below expectations.

Companies often maintain a reserve of retained earnings, which they can draw upon to maintain shareholder dividends, thereby providing some stability and confidence to investors regarding their returns. This can be particularly important for maintaining shareholder satisfaction and ensuring continued investment in the company, despite variations in annual earnings.

In the context of dividends, cash dividends represent immediate cash distribution, while increased market shares and new investment opportunities do not directly relate to the distribution of excess yield over profit but rather reflect broader strategic decisions or impacts on the company's growth and expansion.