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 ?
On August 30, 2016, the PSE announced that, due to Manila Bulletin's pending full compliance with the listing requirements, the shares subject of the 3 percent stock dividend declaration were not be listed on August 31, 2016, the scheduled payment date.
This series D preferred stock dividend will be payable in cash on April 15, 2014, to stockholders of record at the close of business on March 31, 2014.
Digital Realty Trust's board of directors has also authorised a preferred stock dividend of USD0.43750 per share, which will be paid on 29 June 2012 to holders of record on 15 June 2012 of the 7.000% Series E Cumulative Redeemable Preferred Stock.
Two complementary approaches have been followed to learn about stock dividends. The first is how management perceives this decision (management's views) and the second is how the stock reacts in terms of returns, liquidity and volatility.
The bonus element in a rights issue has the same effect as a stock dividend, requiring a restatement of shares outstanding.
Of note is that the ruling neither cited nor discussed the prior rulings or case law addressing stock dividends that take place when shareholders have a pre-existing outstanding right to require the redemption of their stock both before and after the distribution.
This stock dividend will be paid on 17 December 2018 to shareholders of record date at the close of business on 30 November 2018.
The cash and stock dividends will paid on 14 December 2018 to shareholders of record date as of 23 November 2018.
Stock dividends preserve capital compared with cash dividends which reduce capital.
M2 EQUITYBITES-June 14, 2018-Dynex Capital announces common and two series of preferred stock dividends for Q2 2018
Global Banking News-June 14, 2018-Dynex Capital announces common and two series of preferred stock dividends for Q2 2018
M2 EQUITYBITES-June 6, 2018-Ashford Trust announces common and preferred stock dividends for Q2 2018