Why isn't a corporation's dividend shown on its income statement?

A dividend paid by a corporation is a distribution of previously earned net income (profits). A dividend is not an expense or a loss. Therefore, dividends declared and/or paid are not part of the computation of net income that is presented on the income statement.

Dividends declared by corporations are reported in their statements of changes in Retained Earnings and Stockholders' Equity.

Free Financial Statements Cheat Sheet

301,099
Subscribers
You are already subscribed. This offer is not available to existing subscribers.
Error: You have unsubscribed from this list.
Step 2: Please check your email.