Retained earnings are a type of equity listed in the shareholders ... but they are typically two different accounts. While retained earnings represent the cumulative profits a company has ...

The Bottom Line Cash and stock dividends are two types of dividends that companies may pay their shareholders. On the balance sheet, cash dividends reduce the cash account and retained earnings.

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 ...