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Glossary · PSX term

Stock dividend.

A stock dividend pays shareholders in extra shares instead of cash.

Definition

A stock dividend is essentially the same idea as bonus shares, increasing your share count while the price adjusts down for the larger number of shares. Your total value does not change just because of the issue.

Worked example

A 10% stock dividend gives a holder of 100 shares 10 more, while the price typically drops to reflect the larger count.

Related on PSX Clarity

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Bonus shares
Term
Share split
Term
Book value
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Ex-dividend date

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