Solution Matrix • Cost-Benefit-Analysis

Dividend

Dividends are the funds generated by profitable operations that are distributed to shareholders. After a profitable period, a company can (at the discretion of its board of directors) pay some of its income to shareholders, as dividends, and keep the remainder as retained earnings

Dividends are not expenses because they come out of net income, and net income comes at the bottom of the income statement after all expenses have been claimed.

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