Are dividends paid operating activities?

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Pineau 0 Comments

Is it wrong to include the dividends that a company pays in the operating activities section of a cash flow statement?

1 Answer

score 0 · Answer 1 · 2012-12-02T22:44:51+00:00

No dividends paid are not operating activities. Cash flow from operating activities have to do with the day to day operations. Dividends is not a day to day operations as it is basically a distribution of the profits recognized. Dividends is a financing activity.