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 Pennsylvania, dividends are distributions of a company's earnings to its shareholders, which can be authorized by the company's board of directors. These earnings are typically derived from the company's net profits. The portion of profits not distributed as dividends is referred to as retained earnings, which the company uses for reinvestment or other corporate purposes. Dividends can be paid out to all shareholders or specific classes of shareholders, depending on the company's structure and the type of shares issued. The dividends may be issued in the form of cash payments or additional stock, known as stock dividends. The frequency of dividend payments can be regular, such as quarterly or annually, or they can be issued as a special, one-time distribution. The payment of dividends in Pennsylvania is subject to both state corporate law and federal securities regulations, which govern how and when dividends can be distributed to ensure fair treatment of shareholders and proper disclosure.