Payment of a corporate dividend in the form of stock 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. Stock dividends are often used to conserve cash needed to operate the business. Unlike a cash dividend, stock dividends are not taxed until sold. Bloomberg Financial Dictionary
————
A dividend paid to shareholders in the form of shares in the issuing company or in another company. This may involve a surrender of the existing shares and the use of a new ISIN. The nominal value of the shares is adjusted accordingly. Euroclear Clearing and Settlement glossary
* * *
* * *
A dividend paid to shareholders in the form of authorized but hitherto unissued shares.
► See also Dividend.
* * *
stock dividend UK US noun [C] STOCK MARKET, FINANCE
► SCRIP DIVIDEND(Cf. ↑scrip dividend)
Financial and business terms. 2012.