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What is a stock dividend?

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2nd Nov 2009 by Mark P. Cussen, CFP, CMFC

A stock dividend represents a share of the current profits realized by a company. It is passed through at the corporate level to each shareholder. Shareholders will receive a dividend for each share of stock that they receive, so larger shareholders will receive larger dividends. Companies that post losses may pay reduced dividends or no dividends at all.

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19th Oct 2009 In Stocks 1 Answers | 799 Views

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