# Dividend

> Dividend — A distribution of earnings to shareholders, declared by the board — a liability from the declaration date and a reduction of retained earnings, never an expense.

Source: https://lopifi.com/glossary/dividend
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is dividend?** In accounting, dividend means a distribution of earnings to shareholders, declared by the board — a liability from the declaration date and a reduction of retained earnings, never an expense.

## Words this system refuses for it

- expense
- drawings (an owner's withdrawal from an unincorporated business)

- **Category:** Equity & financing
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** retained-earnings, liability, expense