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stock dividend
noun
- a form of dividend collected by a stockholder in extra shares of the corporation's stock rather than in cash.
- the stock received in such a dividend.
Word History and Origins
Origin of stock dividend1
Example Sentences
Nearly $180 million in stock dividends flows, tax-free, into the school’s coffers each year, derived from the high-margin profits from chocolate, candies and snacks made by the huge, for-profit Hershey Co.
Many Silicon Valley and infotech companies have emulated Buffett’s model, eschewing stock dividends, at least for a time.
The substance of what he gleaned from Cassidy's newspaper was that those directors had declared a stock dividend of 200 per cent.
At their discretion, the directors may, instead of paying a dividend in cash, declare what is known as a stock dividend.
A stock dividend cannot, however, be declared when it would not be proper to declare a cash dividend.
It is not absolutely necessary that a company possess treasury stock to declare a stock dividend.
The directors declare a cash dividend of 7%, and a stock dividend of 25%.
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