An example of retained earnings is when a corporation keeps of 60% of the net income and distributes the remaining 40% to the shareholders through dividends.
retained earnings - Investment & Finance Definition
Corporate earnings that are not paid out as dividends. Retained earnings are accounted for on a company’s balance sheet as owners’ equity, and are distinguished from paid-in capital, which is the difference between the par value of equity and the amount of funds raised from a stock issue. Also called undistributed profits or surplus.