Liability Dividend

liability dividend

A dividend paid with a type of debt, such as a bond. Liability dividends are usually paid when a firm is short of cash. Compare scrip dividend. See also bond dividend.

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Liability Dividend

A dividend paid with debt, especially a bond. A liability dividend often indicates that the company distributing it is cash poor and otherwise would be unable to meet dividend obligations. It is also called a scrip dividend or a bond dividend. See also: Cash dividend, Stock dividend.