What is a stock dividend?

A stock dividend is a dividend paid as shares of stock instead of cash. You can sell these dividend shares for an immediate payoff, or you can hold them. A stock dividend functions essentially like an automatic dividend reinvestment program (more on that below). When Are Dividends Paid?

What are dividends & how do they work?

Dividends are payments a company makes to share profits with its stockholders. They're paid on a regular basis, and they are one of the ways investors earn a return from investing in stocks. Dividends can be paid out in cash, which can be reinvested or withdrawn and used as income, or they can come in the form of additional shares.

What is a dividend in insurance?

Insurance. (in participating insurance) a distribution to a policyholder of a portion of the premium not needed by the company to pay claims or to meet expenses. a share of anything divided. anything received as a bonus, reward, or in addition to or beyond what is expected: Swimming is fun, and gives you the dividend of better health.

What is a dividend reinvestment?

Investors in DRIPs are able to reinvest any dividends received back into the company's stock, often at a discount. DRIPs typically aren't mandatory; investors can choose to receive the dividend in cash instead. Special dividends. These dividends pay out on all shares of a company’s common stock, but don’t recur like regular dividends.