optional dividend

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.
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Starting with the 2013 dividend (to be paid in 2014), dilution resulting from the optional dividend (cash or shares) will be offset through a share buy-back and cancellation of the same number of shares issued as stock dividend.
V (Euronext:KTC) announced today that with regard to the optional dividend, the number of dividend rights that grant entitlement to one new share has been fixed at 34 dividend rights of an ordinary share with a par value of EUR2.