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 West Virginia, as in other states, dividends are distributions of a company's earnings to its shareholders, typically derived from the company's net profits. The decision to issue a dividend, the amount, and the form it takes—whether cash or additional stock—is at the discretion of the company's board of directors. Dividends can be issued to all shareholders or specific classes of shareholders, depending on the company's structure and the types of stock issued. They may be distributed on a regular schedule, such as quarterly or annually, or as a special, one-time payment. Retained earnings are the portion of profits that are not distributed as dividends but are kept by the company for reinvestment or other corporate purposes. The payment of dividends and the management of retained earnings are governed by corporate law and the company's own articles of incorporation and bylaws. It's important to note that while state statutes provide a legal framework for corporate governance, specific dividend policies and practices are typically outlined in a company's governing documents.