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A dividend is a distribution to some or all shareholders of some portion of a company’s earnings—usually from its net profits. The profits retained by the company (and not paid as dividends) are known as retained earnings.

A company’s board of directors may decide to pay a dividend to one or more classes of shareholders, or to all shareholders. Dividends may be paid as cash or as additional stock. And dividends may be paid at a scheduled frequency or as a special dividend on a nonrecurring basis.

In Arizona, as in other states, the payment of dividends is governed by corporate law. Arizona's statutes allow corporations to pay dividends to shareholders out of their surplus or net profits available for dividends, as long as the payment does not render the corporation insolvent. The board of directors of a company has the discretion to declare dividends and may choose to pay them to all or specific classes of shareholders. Dividends can be distributed in the form of cash or additional stock, and they may be issued on a regular schedule or as a special, one-time distribution. The specific rules and procedures for declaring and paying dividends are typically outlined in a company's bylaws and must comply with Arizona state law as well as any applicable federal regulations.

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Investments

dividends

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Arizona State Code

Arizona State Code

Investments

dividends

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