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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 Indiana, as in other states, the payment of dividends is governed by state corporate law and the specific company's articles of incorporation and bylaws. Under Indiana Code Title 23. Business and Other Associations, corporations have the authority to declare and pay dividends out of their surplus or net profits to shareholders according to their respective shares. The board of directors of a company typically has the discretion to decide whether to pay dividends, when to pay them, and in what form, whether cash or stock. However, they must ensure that the payment of dividends does not render the corporation insolvent. Dividends can be paid on a regular basis, such as quarterly or annually, or as a special, one-time distribution. The board's decision to pay dividends must comply with the Indiana Business Corporation Law, which includes provisions to protect creditors and maintain the integrity of the corporation's capital.

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Investments

dividends

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