stock dividend

Shares as payment

A stock dividend is a dividend paid to shareholders in additional shares rather than cash.

If a company declares a 5% stock dividend, shareholders receive one new share for every twenty they own.

Unlike cash dividends, stock dividends don't reduce company assets—they simply divide ownership into more pieces.

The board approved a 10% stock dividend instead of the usual quarterly payout.

Related

quarterly · earnings · annual report · portfolio · brokerage account · shares · preferred shares · bonus · cash · distribution · equity · share price · Wall Street · broker · passive income · drip · compound · announce

Categories
Opposites
form of dividend payment

stock dividendcash dividend

Monetary return to shareholders

share buyback

corporate capital action

stock dividendstock buyback

Corporation reacquiring its shares

shareholder wealth distribution

stock dividendretained earnings

Profits kept by company

Family

stock, dividend, stocks, stocked, stocking, stocky, stockpile, stockholder, stockroom

Familiarity
Top 500,000
Profile
Used worldwide · Timeless · Rated G