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


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