A dividend is a return on capital to the shareholders. It 
would be in some ways more like a draw to a proprietorship 
which is not an expense of the business either. 

firstly ,dividend is a return on capital .  In other words 
it is like an appropriation  of profit .
secondly, net income=gross income-expenses. and dividend is 
not considered as expense

dividend is normally declared or made payable from net 
income. remember net income will be either retained 
(retained income), distributed as dividend or apportioned 
between the two based on the companies dividend policy.

Dividend declared is not included in calculating net income 
because dividend is not a charge to income, it is 
appropriation of income.

Dividend is calculated only after arriving at the net 
income fiugre. Dividend is certain percentage of Net 
income. So we cannot calculate dividend before calculating 
Net income.