whats a stock dividend?

Question

http://www.otcstockpros.com/?gclid=CNOrvOHorYYCFSaRIgodp3GkWg
should i buy this stock??
Nutralogix labs $0.61 a share

Answer 1

After reading the previous answers, I decided to add my two cents worth.

A stock dividend is not really a dividend at all. It is a watering of the stock. It adds to the outstanding stock and the value of the earnings is diluted. For example, if the company earns $100 and has ten shares of stock outstanding the earnings per share is $10. If they then declare a 10% stock dividend, there are now 11 shares outstanding and the earning per share is now $9.09.

So when the stock goes ex-dividend, the price of the stock immediately drops to reflect the additional shares. As it also does
when when a cash dividend is paid to reflect that the dividend is not longer part of the value of the stock.

Answer 2

A dividend is like getting paid interest on your investment.

Some big companies with lots of cash decided to pay dividends to stockholders.

Some pay as much as five or six percent, which is more than money earns in savings accounts.

However, you need to investigate them.

When they keep paying high dividends, they can see rocky times and many will have to cut dividends.

Sometimes it's better to own stocks that don't pay dividends but keep growing fast.

Again, you must be very careful with any company you buy stock in.

You should do homework and check all the available web sites to get ideas.

Then when you're ready, make small investments and watch where they go.

Caution is always in style.

Answer 3

Companies have 2 choices, they can pay their dividend in cold hard cash or in the form of additional stock.

When a company gives you more stock instead of cash, it's called a stock dividend. If they pay you in cash, it's called a cash dividend.

FYI, if the dollar amount of the dividend isn't enough to buy a full share of stock because of it's price, then you'd get fractional amounts. So getting something like 0.0843 shares isn't unusual.

Answer 4

A stock dividend is a dividend which is paid in stock! instead of money. So if a stock is priced at 1$ and a dividend is declared of 10% for every 10 units of stock you hold you will be given 1 more unit of stock.

Answer 5

A dividend paid as additional shares of stock rather than as cash. If dividends paid are in the form of cash, those dividends are taxable. When a company issues a stock dividend, rather than cash, there usually are not tax consequences until the shares are sold.

Answer 6

dividends are a portion of the company's profits paid to shareholders as return on investment (similar to interest rate from a bank, but dividends can be raised or lowered)

any OTC stock is very risky...I wouldn't buy