Stock dividend


 

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Stock dividend

The payment of a dividend to shareholders in the form of stock instead of cash. If a company declares a 5% stock dividend, a shareholder with 1,000 shares will receive an additional 50 shares. Known as a scrip dividend in the UK.

Stock dividend

Payment of a corporate dividend in the form of stock rather than cash. The stock dividend may be additional shares in the company, or it may be shares in a subsidiary being spun off to shareholders. Stock dividends are often used to conserve cash needed to operate the business. Unlike a cash dividend, stock dividends are not taxed until sold.



Stock dividend

Similar Matches

Dividend distribution

Dividend distribution

See: Dividend income


Insurance dividend

Insurance dividend

Money paid annually to policyholders participating in cash value life insurance policies.


Dividends payable

Dividends payable

The declared dividend dollar amount that a company is obligated to pay.


Dividend Discount Model (DDM)

Dividend Discount Model (DDM)

A method to value the common stock of a company that is based on the present value of the expected future dividends.


Ex stock dividends

Ex stock dividends

The time period between the announcement of a stock dividend and its actual payment. The buyer of shares during this time period does is not entitled to the dividend.


Further Suggestions

dividend growth
Unpaid dividend
Interim dividend
Dow dividend theory
Preferred dividend coverage
Ex dividend
Selling dividends
Dividend policy
dividend cover
Dividend
Accumulated dividend
Dividend payout ratio
Year end dividend
Outstanding Dividends
Dividend requirement
ex dividend
Dividend clawback
Traditional view (of dividend policy)
Indicated dividend
dividend
Dividend Disbursing Agent
Tax differential view (of dividend policy)
unpaid dividend
Liquidating dividend
accumulated dividend


 
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