List of 5 Types of Dividends (with Examples) Dividend refers to the portion of the profit of the company which distributes to the shareholders as a reward for the investments made by them in the company and the different types of dividends include Cash dividend, Stock dividend, property dividend, Scrip dividend and liquidating dividend, etc. Cash Dividends on Common Stock. Cash dividends (usually referred to as "dividends") are a distribution of the corporation's net income. Dividends are analogous to draws/withdrawals by the owner of a sole proprietorship. As such, dividends are not expenses and do not appear on the corporation's income statement. This amount includes income owed to parties separate from the common shareholders. For example, if the company has a net income of $500,000 for the year and has promised a fixed annual dividend of $50,000 to preferred stockholders, then calculate $500,000 - $50,000 = $450,000.