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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 Utah, as in other states, the payment of dividends by a company is governed by state corporate law as well as the company's own articles of incorporation and bylaws. Under Utah law, specifically the Utah Revised Business Corporation Act, a corporation can distribute dividends to its shareholders if the board of directors determines that the company has sufficient profits to do so after paying its debts and retaining enough earnings for the continued operation of the business. These profits are known as retained earnings. The board of directors has the discretion to decide whether to pay dividends, to which class of shareholders, and in what form—whether cash or additional stock. Dividends can be issued on a regular basis, such as quarterly or annually, or as a special, one-time distribution. It's important for corporations to comply with these regulations to ensure that dividends are distributed legally and fairly among shareholders.

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Investments

dividends

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Investments

dividends

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