stock dividend

noun

, Finance.

a form of dividend collected by a stockholder in extra shares of the corporation's stock rather than in cash.
the stock received in such a dividend.

First recorded in 1900–05

The substance of what he gleaned from Cassidy's newspaper was that those directors had declared a stock dividend of 200 per cent.

At their discretion, the directors may, instead of paying a dividend in cash, declare what is known as a stock dividend.

A stock dividend cannot, however, be declared when it would not be proper to declare a cash dividend.

It is not absolutely necessary that a company possess treasury stock to declare a stock dividend.

The directors declare a cash dividend of 7%, and a stock dividend of 25%.

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