answersLogoWhite

0

A stock dividend is when a company distributes additional shares of its stock to shareholders, while a cash dividend is when a company pays out cash to shareholders as a form of profit sharing.

User Avatar

AnswerBot

5mo ago

What else can I help you with?

Continue Learning about Finance

Why would a company issue a stock dividend instead of a cash dividend?

From InvestorWords.com: 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. These additional shares of stock are usually distributed to shareholders at no cost. Please see the following site for additional information: http://en.wikipedia.org/wiki/Dividend


What is the process for receiving a loan stock dividend?

To receive a loan stock dividend, you must own shares of the company that issues the dividend. The company will announce the dividend payment date, and you will receive the dividend in the form of additional shares of stock or cash, depending on the company's policy.


What is the difference between cash dividends and stock dividends?

Cash dividends are payments made by a company to its shareholders in the form of cash, while stock dividends are payments made in the form of additional shares of the company's stock.


Identify the cash flows available to an investor in stock. How reliably can these cash flow be estimated?

Some cash flows that are available to a stock investor include dividend payments and the cash flow that he can get upon the sale of the stock. Dividends are more suitable in the long run.


Is it true that when the board of directors declares a cash or stock dividend this action decreases retained earnings?

yes it is..

Related Questions

When it comes to the items on the statement of cash flows would you expect a stock dividend to appear in the financing section?

If stock dividend is received then it will be shown under cash flows from investing activities while if stock dividend is paid then it is shown under cash flow from financing activities.


What type of dividends are never paid out in cash?

stock dividend


Why would a company issue a stock dividend instead of a cash dividend?

From InvestorWords.com: 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. These additional shares of stock are usually distributed to shareholders at no cost. Please see the following site for additional information: http://en.wikipedia.org/wiki/Dividend


What is the process for receiving a loan stock dividend?

To receive a loan stock dividend, you must own shares of the company that issues the dividend. The company will announce the dividend payment date, and you will receive the dividend in the form of additional shares of stock or cash, depending on the company's policy.


What are the different types of dividends corporations may issue?

1 - cash dividend 2 - Stock dividend 3 - Dividend in kind


Is a stock dividend reported on a statement of cash flows why or why not?

No, it is not a cash flow, and it also is not a significant fiancing or investing activity.


Invested 53200 cash in the common stock of XYZ a 4 percent interest. Received the quarterly dividend of 1450 from the investment in XYZ. Journalize dividend transaction?

[Debit] Cash 1450 [Credit] dividend income 1450


What is the difference between cash dividends and stock dividends?

Cash dividends are payments made by a company to its shareholders in the form of cash, while stock dividends are payments made in the form of additional shares of the company's stock.


Identify the cash flows available to an investor in stock. How reliably can these cash flow be estimated?

Some cash flows that are available to a stock investor include dividend payments and the cash flow that he can get upon the sale of the stock. Dividends are more suitable in the long run.


Is paying cash for a dividend an increase or a decrease to your assets?

stock dividends what impact on total assets


How do cash dividends affect stockholders equity and how would a stock dividend affect stockholders equity?

They do not.


What effect will the declaration and distribution of a stock dividend have on the net income and cash flows?

19. What effect will the declaration and distribution of a stock dividend have on net income and cash flows? (Points : 2)No effect on net income or cash flowsNo effect on net income, decrease cash flowsDecrease net income, decrease cash flowsIncrease net income, no effect on cash flows