Dividends Paid is the sum of money or Dividends issued to shareholders of a company
Dividends paid are recorded on a company's cash flow statement as a financing activity as they represent an outflow of cash from the company to its shareholders. Dividends paid represent a reduction in retained earnings for the company so only established, stable companies pay out dividends. Smaller companies will retain all of their earnings and reinvest them into the company.
Dividends paid are extremely important to income investors as it identifies the amount of cash paid out by the company to its investors. A consistent, stable amount of dividends paid also demonstrates the ability to generate cash flow and continue funding its operations.