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Stock dividend |
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Stock dividendThe 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 dividendPayment 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 MatchesDividends payableDividends payableThe declared dividend dollar amount that a company is obligated to pay. Passed dividendPassed dividendThe failure of a company to pay a scheduled dividend, usually because of reduced profits. When a company passes a dividend, institutional investors are usually very unforgiving, and the company can expect to see its share price marked down sharply. Tax differential view (of dividend policy)Tax differential view (of dividend policy)The view that shareholders prefer capital gains over dividends, and hence low payout ratios, because capital gains are effectively taxed at lower rates than dividends. Dividend OrderDividend OrderA letter or form signed by the shareholder instructing a corporation to issue and forward dividend and/or interest payments to a specific person or entity other than the registered owner, such as a bank or broker. Cumulative dividend featureCumulative dividend featureA requirement that any missed preferred or preference stock dividends be paid in full before any common dividend payment is made. Further SuggestionsYear end dividendDividend trade roll or play Outstanding Dividends interim dividend Optional dividend Traditional view (of dividend policy) Dividends received deduction Insurance dividend Participating dividend Interim dividend Dividend Discount Model (DDM) unpaid dividend Preferred dividend coverage Dividend capture dividend yield Accumulated dividend Ex stock dividends Selling dividends Ex dividend extra dividend year end dividend dividend discount model Income dividend Residual dividend approach Cum dividend |
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