Stock dividends allow companies to share a portion of their profits with its investors. Dividends from stocks can be an additional source of passive income allowing individuals to further grow their finances. If a company issues a stock dividend of 5%, shareholders will receive 0.05 shares in dividends for every share they already own.There are several important days to keep in mind when it comes to dividends. These dividends pay out on all shares of a company’s common stock, but don’t recur like regular dividends.
