Dividends from available for sale securities

[allalongthewatc]

Do ‘dividends from available for sale’ securities affect Net income? I believe they are included on ‘other comprehensive income’ and hence, do affect owner’s equity. Isn’t it? I am reading Kaplan’s notes, and it says that such dividends dont affect owner’s equity. Please help.
Thanks

 

[S2000magician]

Dividends received go on the income statement; the classification of the stock (available-for-sale vs. trading) doesn’t matter.
They affect owner’s equity through net income, which adds to retained earnings.

 

[allalongthewatc]

Thanks S2000magician

 

[S2000magician]

You’re welcome.