A dividend paid as additional shares of stock rather than as cash. If dividends paid are in the form of cash, those dividends are taxable. When a company issues a stock dividend, rather than cash, there usually are not tax consequences until the shares are sold.
Related information about stock dividend:
- Stock Dividend Definition | Investopedia
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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They are usually issued in proportion to shares owned (for example, for every 100 shares of stock owned, a 5% stock dividend will yield 5 extra shares). If the ...
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Learn the differences between a stock split and a stock dividend. See the journal entries for large and small stock dividends.
- Stock Dividend - Legal Dictionary - The Free Dictionary
A corporate distribution to shareholders declared out of profits, at the discretion of the directors of the corporation, which is paid in the form of shares of stock, ...
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