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 Wyoming, as in other states, the payment of dividends is governed by state corporate law and the specific company's articles of incorporation and bylaws. The decision to distribute dividends is typically made by the company's board of directors and can be issued to all classes of shareholders or specific classes, depending on the rights attached to the shares. Dividends can be paid out in cash or in the form of additional stock, known as stock dividends. The frequency of dividend payments is at the discretion of the board and can be regular or special one-time distributions. The amount and timing of dividends are influenced by the company's profitability, financial needs, and the board's assessment of the best use of earnings. Retained earnings are the portion of net profits that are not distributed as dividends but are kept by the company to reinvest in its business or to pay down debt. Wyoming's corporate statutes outline the legal framework within which dividends may be declared and paid, ensuring that the company maintains sufficient capital and meets its financial obligations.