A stock dividend, also known as a "scrip dividend", is a dividend payment made with stock instead of cash. Sometimes when companies are tight on cash, they will declare and pay a stock dividend in lieu of a cash dividend. Most shareholders feel like they are getting something. But are they really? In short, a stock dividend is nothing more than a glorified stock split. At the end of the process, the shareholder has more shares that are worth less. Like a stock split, you can not create value by issuing paper and getting nothing in exchange.
Below are several select companies that recently decided to create real value for their shareholders by raising their cash dividends:
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10 Companies Creating Real Wealth With Higher Cash Dividends
Posted by D4L | Sunday, July 26, 2015 | ArticleLinks | 0 comments »________________________________________________________________
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