stock dividend

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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

A dividend that is paid in stock or bonds rather than cash. A stock dividend may be declared when the company is cash poor and cannot afford a dividend otherwise. They are generally not considered desirable because one must pay capital gains tax on stock dividends, even though there is no cash gain for the shareholder. It is also called a scrip dividend. See also: Payment-in-kind bond.

stock dividend

A dividend made up of shares of the paying firm's stock. A stock dividend is often used in place of or in addition to a cash dividend if the firm wishes to conserve cash. Unlike a cash dividend, a stock dividend is usually not taxable to the shareholder when it is received, but rather when it is sold. Stockholders who are supposed to receive a fractional share will often receive a check for the amount equal to the market value of the fractional share. Payment of a stock dividend is indicated in stock transaction tables in newspapers by the symbols b and t. See also scrip dividend.

stock dividend

a DIVIDEND payment whereby a SHAREHOLDER is paid a dividend in the form of additional SHARES or STOCKS in the company rather than in the form of cash. See also STOCK SPLITS.

stock dividend

a DIVIDEND payment whereby a SHAREHOLDER is paid a dividend in the form of additional SHARES or STOCKS in the company rather than in cash. See also STOCK SPLITS.

Stock Dividend

Additional shares of stock distributed to shareholders at no cost. The number of shares received are a percentage of the shares owned. The basis of the original shares is generally apportioned equally to the total shares owned after the distribution.
References in periodicals archive ?
Such plans may create problems, however, if they are in effect when the corporation declares a stock dividend.
Shareholders participating in the company's dividend reinvestment program may elect to transfer the fractional share or all of the stock dividend into their plan account, and for nonparticipating shareholders, a fractional share buy-up option will be offered.
That number will be adjusted as appropriate to reflect the stock dividend.
01 per share payable on July 15, 1992, to shareholders of record on June 30, 1992, resulting in the payment of a cash dividend on the new shares issued in connection with the stock dividend.
71% on current shares outstanding and also declared a 10% stock dividend.
These payments will remove the legal impediments for the board to consider resumption of common stock dividends when financial conditions permit, a company official said.
North Bay Bancorp (Nasdaq:NBAN), holding company for The Vintage Bank and Solano Bank, today announced its Board of Directors declared a 5% stock dividend and a $0.
The split was effected by declaring a stock dividend, to the holders of Common Stock on the Record Date, of three shares of Common Stock for each share of Common Stock outstanding on the Record Date.
Based upon stockholder approval, the previously announced 3-for-2 stock dividend will be payable on July 9, 2002 to stockholders of record on July 1, 2002.
The Transcription Services business unit reported profitable, cash flow positive operating results, before giving effect to the preferred stock dividends.
American Bank (OTCBB: BKMD) Rockville, Maryland announced today that The Board of Directors has declared a Five Percent (5%) stock dividend to shareholders of record as of March 15, 2002.
Littlefield Corporation's Board of Directors has given authority to Management to issue a ten percent (10%) stock dividend to shareholders of record at a future date to be determined.