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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 Missouri, as in other states, the payment of dividends by a company is governed by state statutes and corporate bylaws. Under Missouri law, specifically the Missouri Revised Statutes, corporations are allowed to declare and pay dividends to shareholders, but such distributions must not render the corporation insolvent. The board of directors of a company has the discretion to determine if dividends will be paid, when they will be paid, and in what form—whether as cash or stock dividends. The frequency of dividend payments is typically determined by the company's board of directors and may be outlined in the corporate bylaws; dividends can be regular or special (one-time) distributions. It's important for corporations to comply with the Missouri Business Corporation Act, which includes provisions related to the distribution of dividends, to ensure that they do not compromise the company's financial stability or violate the rights of any class of shareholders.

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dividends

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dividends

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