stock dividend
- noun
- /stɑk ˈdɪvɪdɛnd/
- Specialized
- No, they give themselves big salaries and hand out stock dividends.
- tax on stock dividends
- stock dividend income
- taxation on stock dividends
Examples
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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.
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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.
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Investors were pleased to learn that a stock dividend would be issued, giving them more ownership in the company.
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After reviewing the financial report, she discovered that the proposed stock dividend would increase her shareholding significantly.
Surface Forms
Morphology
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.