Defination of Cash and Stock Dividend with Calculation


The word “dividend” comes from the Latin word “dividendum” (“thing to be divided”).  Dividend means bonus that declared by board of directors or Companies owner. Dividends are payments made by a corporation or  board of directors not always paid in money means Cash known as Cash dividend, but can be paid in shares of stock, known as a stock dividend.

So dividend is: Cash dividend and stock dividend.

How Calculation dividend?

Dividend = $20! (($2000/$10)x$0.10)

Here:  if Number of Shares 200

Cost Per Shares $10

Company issues a dividend of $0.10

What is cash Dividend?

A cash dividend is a cash payment made by the corporation or board of directors to the shareholders.

What is stock Dividend?

A stock dividend is the payment based on shares of stock is, a trader receives from the company or corporation he/she is currently own how many shares.

Sample or Format of fractional Cash Dividend

Sample or format of  dividend Notice