Defination of Cash and Stock Dividend with Calculation

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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

 

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