Which financial statement includes reports of dividends paid to stockholders?

The Statement of Stockholders' Equity is the financial statement that specifically includes reports of dividends paid to stockholders. This statement provides a detailed account of the changes in equity over a specific period, including contributions from shareholders and distributions back to them in the form of dividends.

When dividends are declared and paid, they are recorded as a reduction in retained earnings on this statement, reflecting the return of profits to shareholders. Additionally, the Statement of Stockholders' Equity presents other elements such as additional paid-in capital and treasury stock, but its key focus is the ownership equity and how it relates to dividends.

The Balance Sheet does not detail dividends directly; rather, it summarizes the financial position of the company at a specific point in time. The Income Statement focuses on revenues and expenses to determine net income, not on dividend distributions. Lastly, the Statement of Cash Flows records cash inflows and outflows from operations, investing, and financing activities, but it only provides an indirect view of dividends through its financing section, mainly reflecting cash paid rather than detailing the amounts or the impact on retained earnings.