Scrip dividend

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Scrip dividends give investors the option to receive additional (usually freshly issued) shares instead of a cash dividend. They are exempt from stamp duty and dealing charges and are cheaper for the issuer, since it can hang onto the cash within its business.

holders can sell scrip dividends in the market and there is a fungame to be had playing the implied optionality between the scrip and cash after the dividend has been declared but before it is paid.

Scrip dividends are taxed in the same way as cash dividends.

See also

• Dividend
• Dividend Payment Date