The main goal of this paper is to characterize stability and bounded-input-bounded-output (BIBO)-stability of quaternionic dynamical systems. After defining the quaternion skew-field, algebraic properties of quaternionic polynomials such as divisibility and coprimeness are investigated. Having established these results, the Smith and the Smith-McMillan forms of quaternionic matrices are introduced and studied. Finally, all the tools that were developed are used to analyze stability of quaternionic linear systems in a behavioral framework.