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financial concepts
Essay specific features
Written by:
Yvonne C
Date added:
June 27, 2015
Level:
University
Grade:
A
No of pages / words:
2 / 349
Was viewed:
3634 times
Rating of current essay:
Essay content:
Explain a stock dividend and further explain if you would prefer it to a cash dividend.
A Stock Dividend is a payment of a corporate dividend in the form of stocks rather than cash. The stock dividend may be additional shares in the company, or it may be shares in a subsidiary being spun off to shareholders...
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The dividend is usually expressed as a percentage of the shares held by a shareholder. Dividends paid in cash are taxable while a stock dividend is not taxed until it is sold. If I was given a choice, I would choose the stock dividend. Once you are paid cash, your money doesn't have the opportunity to grow unless you invest wisely...
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