What Are The Various Forms Of Dividend?


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1.Cash Dividend
Cash dividends(most common) are those paid out in the form of a cheque. Such dividends are a form of investment income and are usually taxable to the recipient in the year they are paid.This is the most common method of sharing corporate profits with the shareholders of the company. For each share owned, a declared amount of money is distributed. Thus, if a person owns 100 shares and the cash dividend is $0.50 per share, the person will be issued a cheque for 50 dollars.
2. Stock Dividend:-Stock or scrip dividends are those paid out in form of additional stock
shares of the issuing corporation, or other corporation (such as its
subsidiary corporation). They are usually issued in proportion to shares
owned (for example, for every 100 shares of stock owned, 5% stock
dividend will yield 5 extra shares). If this payment involves the issue of
new shares, this is very similar to a stock split in that it increases the total
number of shares while lowering the price of each share and does not
change the market capitalization or the total value of the shares held.
3.Property dividend: When a company or firm pays dividend in the form of assets it is called property dividend.

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