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.
Cash in lieu of stock will be paid for fractional stock dividend shares based on the price at the market close on the record date of the stock dividend.
Luecke, President and Chief Executive Officer, noted that the additional authorized shares and the stock dividend have many benefits going forward.
This marks the third consecutive year that American Bank has paid a 5% stock dividend.
Management desires to solicit shareholder input prior to making a final decision as to whether to use its discretion to issue such a stock dividend.
AmericanWest Bancorporation (Nasdaq:AWBC) today announced its Board of Directors has declared a 10% stock dividend to be issued Feb.
Additionally, we have historically complemented our cash dividends by the issuance of stock dividends.
Hong further commented, "The practice of offering stock dividends has been followed by some Korean community banks for years, when the stocks were not actively traded and the banks wanted to payout something to the shareholders.
Nasdaq:KMGB), a global provider of specialty chemicals in carefully focused markets, today announced that its board of directors has declared a per share common stock dividend of ten percent, as well as its semi-annual cash dividend of $.
Our board of directors intends to evaluate the progress of the company from time to time in the future to determine whether future stock dividends are in the best interest of the company and its stockholders.
All per share amounts disclosed are restated to retroactively reflect stock dividends and stock splits previously reported, including the 10 percent stock dividend announced above.
Nasdaq:MBHI), a community-based bank holding company, reported that the Board of Directors declared a 3-for-2 stock dividend, subject to stockholder approval of an increase in MBHI's authorized common stock shares.