- There are two main types of Dividends
- Cash: Here, Dividend amount is settled in cash.
- iStock: Here, stocks equal to the value of dividend is further issued to the eligible shareholders in the form of bonus shares.
RELATED FACTS:-
Dividends can be paid out in cash, by cheque or electronic transfer, or in stock.
Cash dividends provide investors income, but come with tax consequences. Cash dividends causes the company’s share price to drop.
Stock dividends or bonus shares are usually not taxed. It Increases the shareholders stake in the company and provides the investor a choice to keep or sell the shares.
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