what kind of expense is a dividend
A: Cash or stock dividends distributed to shareholders are not considered an expense on a company's income statement. Stock and cash dividends do not affect a company's net income, and they represent part of a company's retained earnings returned to a company's shareholders.ash or stock dividends distributed to shareholders are not considered an expense on a company's income statement.
A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. When a corporation earns a profit or surplus, it can re-invest it in the business (called retained earnings), and pay a fraction of this reinvestment as a dividend to shareholders.hareholders in companies that pay little or no cash dividends can reap the benefit of the company's profits when they sell their shareholding, or when a company is wound down and all assets liquidated and distributed amongst shareholders.