In that case, then it's part of your dividend subcategory and goes into that net investment income category as previously discussed.
Substitute payments in lieu of dividends result from your broker lending out the stock you own to short-sellers. Those short-sellers borrow your shares and then sell them on the open market, betting that they'll go down in value before they have to repurchase them and return the shares to you.
If the stock pays a dividend during the period that they've borrowed shares, then the short-sellers have to reimburse you for the lost dividend income. This reimbursement is the substitute payment made in lieu of the dividends you would otherwise have received directly from the company issuing the stock.
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