Dividends received from investments is supposed to be recorded in a statement of cash flows.
What are Dividends?
A dividend is a payment made by a corporation to its shareholders that is decided by the board of directors. Dividend payments are frequently made quarterly and might take the form of cash payments or stock reinvestments. The dividend yield, which is the dividend per share, is stated as a percentage of the share price of a corporation, for example, 2.5%. If a common shareholder of a dividend-paying company owns the shares on the ex-dividend date or earlier, they are eligible to receive a payment. The transfer of company profits to qualified shareholders is known as a dividend. The directors of a firm decide on dividend payments and quantities.
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