What Is a Cash Dividend?

A cash dividend is a payment made by a company to its shareholders in the form of periodic distributions of cash.

Cash dividends provide investors income, but come with tax consequences; they also cause the company's share price to drop.

What Is a Stock Dividend?

A stock dividend is a dividend paid to shareholders in the form of additional shares in the company.

Stock dividends are not usually taxed, increase the shareholder's stake in the company and give them the choice to keep or sell the shares; they also dilute the value of existing shares.

Note:

The company's actual implementation is subject to the final disclosure submitted to the exchange. The information provided herein is for reference only.