Optional dividend

A dividends that the shareholder can elect to receive either in cash or in stock.

Optional Dividend

A dividend where the shareholder may choose how to receive it. Generally speaking, the shareholder may choose between receiving the dividend in cash or in stock. See also: PIK.

optional dividend

A dividend in which the shareholder may choose among two or more forms of payment. For example, a firm's directors may give the shareholders a choice between cash or an equal dollar amount of stock.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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