scrip dividend

American  

noun

1. a dividend issued in the form of a note entitling the holder to a cash payment at a specified later date.

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Etymology

Origin of scrip dividend

First recorded in 1880–85

Example Sentences

It said the scrip dividend payment had resulted in the issuance of 175,330,851 new shares as 85% of its shareholders chose the option.

From Reuters

Santander said it was proposing a scrip dividend, payable in new shares, this year equivalent to 10 cents per share for 2019, after the European Central Bank’s recommended euro zone banks did not pay cash dividends until the end of 2020.

From Reuters

The London-based company saw its profits recover sharply in recent years, allowing it to remove the scrip dividend last year, an austerity measure on shareholder payouts.

From Reuters

In a sign of confidence, BP eliminated a scrip dividend for the quarter which allows investors to get shares instead of cash, a measure used during the industry downturn.

From Reuters

Last year, BP returned to buying back shares to offset the dilution from its scrip dividend program, but the company has yet to embrace a multibillion-dollar share buyback program.

From The Wall Street Journal