Business Finance
business and finance question

Question Description

What are the different types of dividends corporations may issue? When should a corporation pay dividends? Do you prefer a stock dividend or a cash dividend? Why? 

Final Answer

There are cash dividends and stock dividends, a corporation usually pays dividends to try to return its wealth back to the shareholders of a company. In my opinion I would prefer the stock dividend because it increases the amount of shares but it does not increase the value of the company just like cash dividends do. The real benefit of the stock dividend is by choice. The shareholder can keep the share or sell the shares in hopes of creating their own cash dividend depending on the situation.

Gabriel E (1551)
UIUC

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