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 New Hampshire, as in other states, dividends are distributions of a company's earnings to its shareholders, which can be issued in the form of cash or additional stock. The decision to distribute dividends is made by the company's board of directors and can be directed towards all shareholders or specific classes of shareholders. The frequency of dividend payments can be regular, such as quarterly or annually, or they can be special dividends issued on a nonrecurring basis. The payment of dividends is typically made from the company's net profits, and the portion of profits not distributed as dividends is referred to as retained earnings, which the company can reinvest in its operations. The regulation of dividends in New Hampshire is governed by state statutes, specifically under the New Hampshire Revised Statutes Annotated (RSA), which outline the legal framework for corporate governance and the distribution of dividends. Additionally, federal law, including tax implications of dividend distributions, must be considered by both the company and the shareholders receiving dividends.