A dividend is allocated as a fixed amount per share, with shareholders receiving a dividend in proportion to their shareholding. For the joint - stock company, paying dividends is not an expense; rather, it is the division of after - tax profits among shareholders. Retained earnings (profits that have not been distributed as dividends) are shown in the shareholders ' equity section on the company 's balance sheet -- the same as its issued share capital. Public companies usually pay dividends on a fixed schedule, but may declare a dividend at any time, sometimes called a special dividend to distinguish it from the fixed schedule dividends. Cooperatives, on the other hand, allocate dividends according to members ' activity, so their dividends are often considered to be a pre-tax expense.
the after-tax profits that are distributed to stockholders are called
dividends dividends dividends dividends dividends dividends