11.6
A stock dividend is a payment made by a company to its shareholders in the form of additional shares rather than cash.
This increases the number of shares each shareholder owns but reduces the value per share proportionally.
However, the total value of the shareholder's holdings remains the same because the overall market capitalization of the company does not change.
For example, suppose a shareholder owns one hundred shares of Pixel Corporation at fifty dollars per share, valued at five thousand dollars.
If the company declares a ten percent stock dividend, the shareholder receives ten additional shares.
The total number of shares increases to one hundred and ten, but the share price typically adjusts to Forty-five dollars and forty-five cents, keeping the total value at five thousand dollars.
Stock dividends can be an attractive option for investors looking for long-term benefits.
Stock dividends allow companies to reward shareholders while retaining cash for growth or other needs. They also signal confidence in future growth.
However, stock dividends do not provide immediate cash benefits and may reduce the share price
Een aandelen dividend is een non-cash dividend waarbij een bedrijf extra aandelen uitkeert aan zijn aandeelhouders in plaats van contanten. Hoewel het…
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