Stock Dividend

Business, Legal & Accounting Glossary

Definition: Stock Dividend


Stock Dividend


Full Definition of Stock Dividend


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.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/stock-dividend/
Modern Language Association (MLA):
Stock Dividend. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
March 19, 2024 https://payrollheaven.com/define/stock-dividend/.
Chicago Manual of Style (CMS):
Stock Dividend. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/stock-dividend/ (accessed: March 19, 2024).
American Psychological Association (APA):
Stock Dividend. PayrollHeaven.com. Retrieved March 19, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/stock-dividend/

Definition Sources


Definitions for Stock Dividend are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 5th February, 2020 | 0 Views.