Generally, dividends are disclosed in one of three ways: on a cash flow statement, in a separate accounting summary included in the company’s regular investor filings, or in a separate press release. Even if not, you may still compute dividends using only a company’s 10-K annual report’s balance sheet and income statement.
To figure out dividends, use the following formula: Dividends are calculated by dividing annual net income by the change in retained profits.
How do you find dividends paid on a balance sheet?
Dividend payments can be easily calculated from the balance statement of a corporation. An investor only needs the last two years’ worth of retained earnings and the current year’s net income to make a decision. Calculation of dividends on the balance sheet is as follows: retained profits from prior years + net income from current year – retained earnings from current year = dividends paid.
From Halliburton’s 2014 annual report, here is a glimpse of the equity part of the oil-field service giant’s (NYSE: HAL) balance sheet, with its retained earnings from the prior two years highlighted:
How do you calculate dividends paid examples?
Dividends are paid per share based on the number of outstanding shares, therefore check the balance sheet. Divide the dividend amount by the number of shares in issue. If the outstanding shares are 100,000 and the dividends paid are $150,000, then the dividend per share is $1.50.
