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 Oklahoma, as in other states, dividends are distributions of a company's earnings to its shareholders, and they can be issued in the form of cash or additional stock. The decision to pay dividends, the amount, and the type are determined by the company's board of directors. Dividends can be paid out regularly, such as quarterly or annually, or as special dividends on a nonrecurring basis. The payment of dividends is subject to both state corporate laws and federal securities laws. Oklahoma state statutes do not specifically dictate how dividends are to be paid but generally require that they not impair the capital of the corporation. The payment of dividends must comply with the Oklahoma General Corporation Act, which sets forth the legal framework for corporate governance and activities within the state. Additionally, federal tax laws apply to the taxation of dividends received by shareholders, and companies must adhere to IRS regulations regarding dividend distributions.