Investor Glossary-stock dividendInvestor Glossary-stock dividendInvestor Glossary-stock dividendInvestor Glossary-stock dividendInsightful stock market charts - Click here
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Stock Dividend

The HTML to link to this page

A stock dividend is a dividend that is paid in shares of the company's stock rather than in cash. A stock dividend, like a cash dividend, is a distribution of part of a company's earnings in proportion to the number of shares each shareholder owns. When a company pays a stock dividend the value of each share of stock is not altered, as it is in a stock split. A stock dividend can be used in place of a cash dividend, or a stock dividend can be paid in addition to a cash dividend. One advantage to the shareholder of a stock dividend as opposed to a cash dividend is that no tax is due on a stock dividend until the stock is sold, whereas tax is due for the tax year received for a cash dividend.

Rate this stock dividend definition...

Learn about investing with the Investor Glossary Term of the Day

Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.

Popular Terms: APR, required rate of return, in escrow, per diem, stock split, cancelled check, labor relations, liquidity ratio, inflation, 401a, limit order, risk management, Key Rate Duration, retained earnings, FICO score, quality assurance, 144a, real GDP, command economy, dividends payable, deferred revenue, class C shares, stock market close, deferred tax, balance sheet, reverse mortgage, phantom income, ex-dividend, option premium, LIBOR, annual return, debt service coverage, open position, 1035 exchange, current ratio, EBITDA, implied volatility, average price per share, wholly-owned subsidiary, Zero Cost Collar, irrevocable trust, ex-dividend date, FTSE, diluted share, covered put, minority interest, VIX, 1031 exchange, margin rate

Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use