stock dividend


Also found in: Dictionary, Thesaurus, Legal, Encyclopedia.
Related to stock dividend: stock split, Cash dividend

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 ?
Moreover, the ruling quotes Tax Court Judge Hamblen's concurring opinion in Frontier, which notes that "[i]f a discretionary act of the board of directors of a shareholder corporation to redeem the stock dividends becomes a routine matter, it might .
Under the terms of the stock dividend resolutions, the U.
chairman of the board, said, "The stock dividend reflects both the strong performance of the company in 1992, with operating cash flow (see note) up nearly 24 percent through the first three quarters, and our confidence in the company.
Stockholders who hold their shares through a third party intermediary such as a brokerage firm will have an option to elect cash in lieu of the stock dividend.
NASDAQ: CASS), the nation's leading provider of freight, utility and telecom invoice payment, rating, auditing and information services, announced a 50% stock dividend payable Sept.
However, by receiving dividends in the form of stock, instead of cash, the taxes on the stock dividend can be deferred.
GSU paid the balance of the preferred stock dividend arrearage and the then-current dividend payment for the first quarter on March 15.
NYSE: CX) announced today the completion of its stock dividend program determined at the Shareholders Meeting on April 27, 2006.
Upon approval of the amendment by shareholders at a special meeting scheduled for June 4, 1992, the board of directors intends to promptly declare a stock dividend in which shareholders will receive one share of non-voting class B common stock for each share of class A common stock held.
Nasdaq: INMD), the largest fertility services company in the United States, today announced that on May 22, 2006 the Board of Directors of the Company declared a 25 percent stock split effected in the form of a stock dividend.
announced today that its Board of Directors has declared a 50 percent stock dividend on the Company's outstanding common stock.