<P> 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 . </P>
<P> 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 . </P>
the after-tax profits that are distributed to stockholders are called
the after-tax profits that are distributed to stockholders are called
dividends
dividends