stock dividends

Investor profit shares

Stock dividends are additional shares of stock given to shareholders instead of cash payments.

A company might issue a 5% stock dividend, meaning 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 declared a stock dividend to conserve cash while still rewarding investors.

Opposites
type of shareholder return

stock dividendscapital gains

Profit from asset sales

market gains · growth investing

profit allocation strategy

stock dividendsretained earnings

Profits kept by company

share buybacks · capital expenditure · business expansion

income type for investors

stock dividendscapital gains

Profit from asset sales

sale proceeds · interest income · bond yields

Family

stock, stocks, stocked, stocking, stockist, stockpile, stockholder, dividend, dividends

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