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 Georgia, as in other states, the distribution of dividends is primarily governed by corporate law. The decision to pay dividends is at the discretion of a company's board of directors, and they may choose to distribute dividends to all shareholders or specific classes of shareholders. Dividends can be paid out 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 payment of dividends is typically made from a company's net profits, and the portion of profits not distributed as dividends is retained by the company as retained earnings. These retained earnings can be used for reinvestment in the company, paying off debt, or other corporate purposes. It's important to note that while the board of directors has the authority to declare dividends, they must also ensure that the payment of dividends complies with state statutes and does not impair the company's capital. In Georgia, the relevant statutes can be found in the Georgia Business Corporation Code, which outlines the legal framework for dividend distributions by corporations registered in the state.