stock dividend


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.

Use stock dividend in a sentence

The stock dividend was good to go and I went to my friend, who knew everything about stocks and how they operated.

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The stock dividend was substantial and I think that, psychologically, the dividend recipients greatly appreciate the timely receipt of the funds.

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Jackie learned that her stock dividend allowed her to accumulate more shares over the three years she owned it, bringing her total number of shares up to one hundred.

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