Also found in: Dictionary, Thesaurus, Legal.
Related to bond dividend: stock dividend, property 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.
A type of liability dividend paid in the dividend payer's bonds.