Cash dividends affect the cash and shareholder equity on the balance sheet; retained earnings and cash are reduced by the total value of the dividend. Stock dividends have no impact on the cash ...

Retained earnings are the cumulative profits that a business holds onto for operations after any dividends have been paid. Retained earnings refer to the portion of a company’s net income that ...

Calculate dividends by subtracting year-end retained earnings from start-year retained earnings, then net income. Dividend payout ratio (DPR) is found by dividing total dividends by net income to ...