Stock Dividend
A dividend payment made in the form of additional shares, rather than a cash payout.
Also known as a "scrip dividend." Investopedia Says:
Companies may decide to distribute stock to shareholders of record if the company's availability of liquid cash is in short supply. These distributions are generally acknowledged in the form of fractions paid per existing share. An example would be a company issuing a stock dividend of 0.05 shares for each single share held. Related Terms:
Dividend Clawback
Dividend Payout Ratio
Dividend Reinvestment Plan - DRIP
Dividend Yield
Ex-Dividend Date
Fractional Share
In Specie
Record Date
Shareholder |