Stock dividends and stock splits should
ADVERTISEMENTS: Difference between Stock Dividends and Stock Splits is given below: An integral part of dividend policy is the use of stock dividends and stock splits. Unlike cash dividends which distribute corporate assets to shareholders and reduce the shareholder’s investments correspondingly, the stock dividends and stock splits are just recapitalizations; they do not distribute assets … If shares are held in a retirement account, stock dividends and stock splits are not taxed as they are earned. Generally, in a nonretirement brokerage account, any income is taxable in the year it Dividends are earnings a company gives back to its shareholders, as determined by the board of directors. Dividends can be paid out in cash, by check or electronic transfer, or in stock, with the