Distribution In Kind

AAA

DEFINITION of 'Distribution In Kind'

A payment made in the form of securities or other property, rather than in cash. A distribution in kind may be made in several different situations, including a stock dividend, inheritance or taking securities out of a tax-deferred account. It can also refer to the transferal of an asset to a beneficiary over the option of liquidating the position and transferring the cash.


Also referred to as a "distribution in specie."

INVESTOPEDIA EXPLAINS 'Distribution In Kind'

The most common form of a distribution in kind occurs when a company pays a dividend in stock, rather than in cash. A distribution in kind may also be employed for tax reasons. In certain situations, receiving appreciated property directly can result in a lower tax bill versus selling the property and receiving the value of the property in cash.

RELATED TERMS
  1. Manufactured Payment

    A payment made to pass through dividend and interest payments ...
  2. Stock Dividend

    A dividend payment made in the form of additional shares, rather ...
  3. In Specie

    A phrase describing the distribution of an asset in its present ...
  4. Payment-In-Kind - PIK

    1. The use of a good or service as payment instead of cash. ...
  5. Policyholder Dividend Ratio

    The policyholder dividend ratio is a measurement of the profitability ...
  6. Paid-Up Additional Insurance

    Additional whole life insurance that a policyholder purchases ...
Related Articles
  1. Investing

    Which is better a cash dividend or a stock dividend?

    The purpose of dividends is to return wealth back to the shareholders of a company. There are two main types of dividends: cash and stock.A cash dividend is a payment made by a company out of ...
  2. Investing Basics

    How Dividends Work For Investors

    Find out how a company can put its profits directly into your hands.
  3. Trading Strategies

    American Express: Headwinds and Tailwinds

    Any investors considering a position in American Express need to know these important facts.
  4. Investing

    Using the Dividend Discount Model

    The dividend discount model is a way of applying net present value analysis to estimate the future dividends a stock will pay. Those dividends are then discounted back to their present value. ...
  5. Investing Basics

    How are dividends usually paid out?

    Discover the two compensation methods commonly used by companies and mutual funds to make dividend payments on equity investments.
  6. Fundamental Analysis

    What are the different ways a CEO could influence stock prices?

    A CEO's influence on a stock price reflects the company's growth strategy and outlook, its financing needs and decisions on any company dividend.
  7. Retirement

    What are the keys to setting up a trust fund?

    Setting up a trust to secure your assets for a beneficiary allows you to set the terms under which the beneficiaries are allowed to access these assets.
  8. Fundamental Analysis

    What are some possible red flags in a company's dividend payout ratio?

    Read about how investors and analysts use the dividend payout ratio to scrutinize the sustainability of a company's dividend policy.
  9. Investing Basics

    How Advisors Can Protect Inherited IRAs

    A new Supreme Court ruling has some financial advisors rushing to set up trusts to help protect inherited IRAs. Is that necessary?
  10. Retirement

    What's the difference between a financial advisor and a financial planner?

    Seeking professional advice from a financial advisor may involve asking for financial help from a certified financial planner, stockbroker or an accountant.

You May Also Like

Hot Definitions
  1. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  2. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  3. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  4. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  5. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
  6. Key Performance Indicators - KPI

    A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their ...
Trading Center