Why do many firms choose to issue stock dividends? What is the value of a stock dividend

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Why do many firms choose to issue stock dividends? What is the value of a stock dividend to a shareholder?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Contemporary Financial Management

ISBN: 9780324289114

10th Edition

Authors: James R Mcguigan, R Charles Moyer, William J Kretlow

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