Here is the formula for calculating dividends: Annual net income minus net change in retained earnings = dividends paid. Image source: Getty Images. Second, the income statement in the annual ...

Identify total dividends from the income statement under "Retained Earnings." Divide total dividends ... has five million outstanding shares, our formula shows a net income of $2.00 per share.

Retained earnings are a type of equity listed in the shareholders’ equity section of a company’s financial statements. Reserves and retained earnings may sound similar, but they are typically ...