Dividend
Accounting glossary · Understand, connect, apply
A dividend is a distribution by a corporation to its shareholders in their capacity as owners.
Example
A board declares a cash dividend; another company may distribute additional shares as a stock dividend.
Remember the difference
Dividends are not expenses used to calculate net income. Cash, stock and liquidating distributions have different accounting effects.
Updated 3 November 2026. Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.
Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.
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