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 Washington State, as in other jurisdictions, 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 typically made by the company's board of directors and can be directed towards all shareholders or specific classes of shareholders, depending on the company's structure and the types of shares issued. Dividends can be paid out on a regular schedule, such as quarterly or annually, or as special dividends that are issued on a non-recurring basis. The payment of dividends is subject to corporate law under the Washington Business Corporation Act, which provides the legal framework for corporate governance and the rights of shareholders. Companies must comply with these regulations when declaring and paying dividends, ensuring that the payments do not violate the terms of their articles of incorporation or state law, and that they maintain sufficient retained earnings to cover the dividends.