I remember reading some time ago that it is a tax benefit to shareholders to provide a stock-stock dividend and if I remember clearly, beats back some of the double taxation experienced by being a shareholder in paying taxes on cash dividend after company's tax paid on income. Maybe someone can clear that up.
Some examples that others have done it:
United Community Banks... declared a regular quarterly dividend that will be paid in shares of common stock on July 1, 2009 to shareholders of record as of June 13, 2009. Each shareholder will receive one new share of common stock for every 130 shares held on June 13, 2009. Headquartered in Blairsville, United Community Banks is the third-largest bank holding company in Georgia. United Community Banks has assets of $8.1 billion and operates 27 community banks with 107 banking offices They were off 1.7% with the news.
Cousins Properties are offering a choice to shareholders to elect cash or stock.
FRESNO, Calif., March 27 /PRNewswire-FirstCall/ -- Dennis R. Woods, President and Chief Executive Officer of United Security Bancshares http://www.unitedsecuritybank.com/ (UBFO) reported that the Board of Directors of United Security Bancshares declared a 2nd quarter 2009 stock dividend of one percent (1%). The stock dividend replaces the quarterly cash dividend...The change in the dividend from cash to stock was employed last year as a precaution against the uncertainties in the 1-4 family residential real estate market and its impact on the Company's construction and related land and lot loan portfolio...This change in dividend policy is in concert with managing the capital of the Company in the best interest of the shareholders. After the uncertainties in the economy subside, the Board of Directors expects to resume paying the quarterly cash dividend
LINCOLNTON, N.C., Nov. 15 /PRNewswire-FirstCall/ -- Carolina Trust Bank CART President & CEO J. Michael Cline announced that at its regular meeting on November 13, the Board of Directors of Carolina Trust Bank voted to issue an 11 for 10 stock split effected as a 10% stock dividend. The additional shares created by the split will be distributed on December 10 to shareholders of record as of November 26, 2007.
WHITE PLAINS, N.Y., Sept. 3 /PRNewswire-FirstCall/ -- Diversified Mortgage Workout Corporation (DMWK) today announced that its Board of Directors has Declared a 20% Stock Dividend on the Company's outstanding Common Stock. The 20% Stock Dividend is payable on October 15, 2008 to all stockholders of record September 30, 2008.
Note on this one the dividend increased the outstanding shares. The 20% Stock Dividend will be paid in free trading common shares and will increase the outstanding common shares (The Public Float) of the Company by about 421,971 to 2,530,926 Shares in the Public Float.
MIAMI -- Benihana Inc. (NASDAQ: BNHNA and BNHN) today announced that the Company's Board of Directors unanimously declared a three-for-two stock split to be effected by means of a dividend of one-half of one share of Common Stock for each outstanding share of Common Stock and each outstanding share of Class A Common Stock. The stock dividend will be payable on June 15, 2007 to holders of record
Internet Golf Association Inc. (OTCBB:IGATE), publisher of www.IGALinks.com, a proprietary golf portal that hosts interactive golf tournaments online, today announced that it has approved a two shares for every one share stock dividend on its common stock. The record date for the stock dividend was September 13, 1999 and the dividend will be effective after the close of market on September 24, 1999.
AUBURN HILLS, Mich., PRNewswire-FirstCall/ -- BorgWarner Inc. , a leading provider of highly engineered engine and drivetrain components and systems to vehicle makers worldwide, announced today that the company's board of directors has declared a 29% increase in the quarterly cash dividend and approved a two-for-one stock split effected in the form of a stock dividend on its common stock...To implement the stock split, shares of common stock will be issued 2007
Wouldn't want to argue with these guys. Corrections Corporation of America (NYSE: CXW) declared a 2-for-1 stock split in the form of a 100 percent stock dividend on its common stock. The stock dividend is payable on July 6, 2007 to stockholders of record on June 29, 2007.
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