Investing in a company that allows for annual dividends is referred to as what?

Investing in a company that allows for annual dividends is best described by shares. When you purchase shares, you acquire a portion of ownership in a company, which may entitle you to receive dividends. Dividends are payments made to shareholders out of a company's profits and are typically distributed on a regular basis, such as annually or quarterly. Therefore, when a company performs well and generates profits, it may choose to share a portion of those profits with its shareholders through dividends.

While bonds and debentures are forms of borrowing where investors lend money to the issuer in exchange for periodic interest payments (not dividends), real estate investments involve property ownership and do not inherently involve dividends unless they are part of a real estate investment trust (REIT). Shares are the direct investment vehicle in companies for capital appreciation and income through dividends, making this answer the most accurate in the context of the question.