Stock Dividend


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."


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BREAKING DOWN '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.

  1. Record Date

    The cut-off date established by a company in order to determine ...
  2. Dividend Payout Ratio

    The percentage of earnings paid to shareholders in dividends. ...
  3. Dividend

    A distribution of a portion of a company's earnings, decided ...
  4. Property Dividend

    An alternative to cash or stock dividends. A property dividend ...
  5. Distribution In Kind

    A payment made in the form of securities or other property, rather ...
  6. Manufactured Payment

    A payment made to pass through dividend and interest payments ...
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  1. Where exactly do dividends come from?

    Companies pay dividends in cash, which typically come from the companies' cash flows from operations by selling goods and ... Read Full Answer >>
  2. Do stock splits and stock dividends affect stockholder equity?

    Stockholders' equity represents the capital portion of a company's balance sheet. The stockholders' equity can be calculated ... Read Full Answer >>
  3. How can stock dividends provide protection against inflation?

    Stock dividends protect against inflation by providing tangible returns that supplement capital returns from rising stock ... Read Full Answer >>
  4. 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: ... Read Full Answer >>
  5. Does a stock dividend dilute the price per share as would a forward stock split?

    Every corporation has the same goal in mind: to maximize shareholder wealth. This goal is fulfilled in two different ways, ... Read Full Answer >>
  6. I would like to invest in a dividend-paying stock. How can I find out which stocks ...

    There are several accessible sources to help investors identify dividend-paying stocks. Here are a few we can recommend:   Generally, ... Read Full Answer >>

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