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 Idaho, as in other states, the payment of dividends is governed by corporate law. The decision to distribute dividends is typically made by a company's board of directors and can be issued to all shareholders or specific classes of shareholders, depending on the company's type of stock and the provisions in its corporate charter and bylaws. Dividends can be paid out in cash or in the form of additional stock, known as stock dividends. The frequency of dividend payments can be regular, such as quarterly or annually, or they can be special dividends issued on a non-recurring basis. Idaho's corporate statutes require that dividends be paid from a company's surplus or net profits, and not from its capital, to protect the company's creditors and the integrity of its capital structure. The specific regulations governing the distribution of dividends by corporations in Idaho are found in the Idaho Business Corporation Act, which outlines the legal framework for corporate governance and shareholder rights within the state.