Is dividend received generally included in Cash Flow From Operations?

Jian-Zhao1's picture
Rank: Chimp | 7

Hi Guys,

I know we generally exclude dividend received from operating income. However, I find multiple internet source do not adjust the dividend received out of the cashflow from operation. Why is this so? Does this appear inconsistent?

Comments (3)

Jul 9, 2017

Dividends received from equity investments normally go into cash flow from investing activities as for a normal business they are not part of core operations

Jul 9, 2017

It shows up as equity earnings from affiliates below operating income but above net income. On CF statement there is a true up that effectively subtracts the equity earnings from affiliates (because it is non cash) then adds back actual dividends received from those affiliates. Definitely does not get accounted for in CFFI

Jul 9, 2017
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