Why dividend recived is an operating actvity?

Dividend received is classified as an operating activity because it is part of a company's regular business operations, reflecting income generated from its investments in other companies. This income contributes to the overall cash flow from core business activities, similar to revenues from sales. Additionally, under accounting standards like IFRS and GAAP, dividend income is often considered part of operating cash flows to provide a clearer picture of a company's financial performance.