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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Stock dividend  

Definition 1.

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.
 

Definition 2.

A dividend paid as additional shares of stock rather than as cash. If dividends paid are in the form of cash, those dividends are taxable. When a company issues a stock dividend, rather than cash, there usually are not tax consequences until the shares are sold.
 

Definition 3.

A dividend payment made in the form of additional shares, rather than a cash payout.
 
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