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stock dividend

stock dividend

2 4.0
Extra shares given to shareholders instead of cash
  • noun
  • /stɑk ˈdɪvɪdɛnd/
  • Specialized
translation icon : dividendo en acciones
  • No, they give themselves big salaries and hand out stock dividends.
  • tax on stock dividends
  • stock dividend income
  • taxation on stock dividends

Examples

  • The existence of dividends also complicates the valuation of common stock options, but to a lesser extent, because the common stock dividend is usually a known amount.

    Academic text (1991)
  • But what the whole essence of a stock dividend is that they're paying it to every shareholder in the same proportion.

  • But on balance, stock dividends are ridiculously low today.

    Blog text (4)
  • The split of Class A and Class B common shares will be in the form of a 100 percent stock dividend payable on Dec. 24 to shareholders of record at the close of business on Dec. 10.

    Blog text (1)
  • This similarity of income generated from options and bonds (never mind the source of that income) vs. income generated from stock dividends can have a dramatic effect on fund values over time.

    Blog text (6)
  • In respect to cash dividends or distributions, stock dividends and/or splits, and the distribution of warrants, which are 25% or greater of the value of the subject security, the ex-dividend date shall be the first business day following the payable date.

    Blog text (15)
  • When the company announced a stock dividend, shareholders were excited to receive additional shares instead of cash.

  • Investors were pleased to learn that a stock dividend would be issued, giving them more ownership in the company.

  • After reviewing the financial report, she discovered that the proposed stock dividend would increase her shareholding significantly.

Surface Forms

Morphology

stock + dividend

The compound combines 'stock' (a share in a company) with 'dividend' (a payment to shareholders), so the meaning—payment issued as additional shares rather than cash—is directly inferable from the constituents. This straightforward noun–noun composition is cross-linguistically common and follows standard English compounding patterns, making it transparent to a B1 learner who knows both words.

Etymology

The term stock dividend comes from a simple, literal idea: a company gives more stock, that is extra 'shares', as a dividend instead of 'cash'. So a stock dividend means shareholders receive extra 'shares' rather than money.