Robert Coles Sun, Jan 13, 2013 @ 07:01 AM. If Internet memes have taught us anything, it's that there are plenty of ways to waste time, be it at work, at home on the couch, or on Facebook at a restaurant.
Retained earnings and stockholders' equity are decreased by a per-share cash dividend that is paid on common and preferred shares of stock, and not on shares of repurchased or treasury stock.
Retained earnings are the profits from past operations a company reinvests in itself rather than pay out as dividends. When a company generates a profit, management has one of two choices: 1) They can either pay it out to shareholders as a cash dividend or 2) retain the earnings and reinvest them in the business.