Stock Dividend

Filed Under » ,
Dictionary Says

Definition of '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

Investopedia explains 'Stock Dividend'

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.

Video Definition


Related Definitions

  • Record Date

    The date established by an issuer of a security for the purpose of determining the holders who are entitled to receive a dividend or distribution.
    Read More »
  • Dividend Clawback

    An arrangement under which those financing a project agree to contribute, as equity, any prior dividends received from the project to cover any cash shortages.
    Read More »
  • Dividend Payout Ratio

    The percentage of earnings paid to shareholders in dividends.Calculated as:
    Read More »
    • Dividend

      1. A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. The dividend is most often quoted in terms of the dollar amount ...
      Read More »
    • Dividend Reinvestment Plan - DRIP

      A plan offered by a corporation that allows investors to reinvest their cash dividends by purchasing additional shares or fractional shares on the dividend payment date.
      Read More »
    • Ex-Date

      The date on or after which a security is traded without a previously declared dividend or distribution. After the ex-date, a stock is said to trade ex-dividend.
      Read More »
    • Scrip

      1. A written document that acknowledges a debt. 2. A temporary document representing a fraction of a share resulting from a split or spin-off. Scrips may be applied to the purchase of ...
      Read More »
    • Property Dividend

      An alternative to cash or stock dividends. A property dividend can either include shares of a subsidiary company or physical assets such as inventories that the company holds. The ...
      Read More »
    • In Specie

      A phrase describing the distribution of an asset in its present form, rather than selling it and distributing the cash. In specie distribution is made when cash is not readily available, ...
      Read More »
    • Retractable Preferred Shares

      A specific type of preferred stock thats lets the owner sell the share back to the issuer at a set price. Typically, the issuer can force the redemption of the retractable preferred ...
      Read More »

Articles Of Interest

Partner Links