2007-01-22 10:35:57 · 8 answers · asked by Anonymous in Business & Finance ➔ Investing
1)The amount of shares outstanding.
2)A measure of confidence to present and future share holders.
2007-01-22 11:03:46 · answer #1 · answered by Puzzleman 5 · 0⤊ 0⤋
Damn, there's a lot of wrong answers here.
Stock dividend doesn't do much more than take the existing shareholder value (the worth of a company) and spread it amongst more shares.
In other words, your value per share decreases.
You don't pay more taxes.
You don't raise money for the company.
You don't increase the yield.
Think of a stock split, like a HUGE stock dividend. It can signal to folks that the management is optimistic about the company (on a split), or that the company is cash poor, so they're just giving you more shares of what you already own (diluting the shares).
That's why people who own stock in a company should keep up with what's going on. So they know when things are good vs. when they're bad and masking it.
Hope that helps!
2007-01-23 07:57:47 · answer #2 · answered by Yada Yada Yada 7 · 0⤊ 0⤋
It does a lot of things: First off, it pays you for owning the stock.
On the flip side, that money could be better spent not on dividends, but expanding the business.
It also shows the company may be maturing and instead of expanding, it actually has enough cash to dole out a dividend.
If a company increases the dividend year over year, that is a sign of strength. I personally would rather see earnings grow rather than the dividend grow.
Don't buy a stock simply for the dividend though. Check out the shippers, like VLCCF, DRYS and EGLE. They all have HUGE dividends, but they fluctuate like crazy and are not reliable.
2007-01-22 11:12:31 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It does not increase your yield. Nor does it indicate the company has more cash for dividends as it is a stock dividend, not a cash dividend. It means you now have more shares of the company's stock. More shares mean a bigger dividend next time, because of more shares you own, not because the "yield" increases.
2007-01-22 12:12:08 · answer #4 · answered by gosh137 6 · 0⤊ 0⤋
Dividend Yield
It also shows that the business cares about their shareholders.
2007-01-22 10:59:33 · answer #5 · answered by Arnold 3 · 0⤊ 0⤋
your yield. increase in stock price(capital appreciation) plus dividends=yield
2007-01-22 11:47:06 · answer #6 · answered by ny2fl 2 · 0⤊ 0⤋
The amount of shares you will own and the amount of stock that is outstanding in that co.
2007-01-22 11:24:13 · answer #7 · answered by ? 6 · 0⤊ 0⤋
Potential tax liability (lol).
2007-01-22 10:39:43 · answer #8 · answered by librarianb 3 · 0⤊ 0⤋