Dividends represent a company’s way of returning value to its shareholders. While they don’t impact reported profits, they do reduce both cash and retained earnings on the balance sheet. This visual breaks down how dividends flow from business operations to shareholder pockets and how they’re measured. Understanding dividend metrics like yield, payout ratio, and DPS is essential for income-focused investors. Remember: dividends are paid from profits, not revenue, and signal a company’s confidence in its cash flow strength. #Dividends #DividendInvesting #investors #FinancialEducation #IncomeInvesting #InvestingBasics #PersonalFinance #StockMarketUK #DividendYield #InvestorKnowledge #CashFlow #AccountingBasics