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Posts4 common ways of stock dividends:
1. Cash dividends
The company pays cash to shareholders as dividends, which is one of the most common forms of dividends. Shareholders can choose to use the cash dividends as income or reinvest them.
2. Stock dividends
The company issues additional shares to shareholders as dividends, usually based on a certain number of shares held, allowing shareholders to receive extra shares. This form of dividend is called "stock bonus" or "stock distribution."
3. Special stock dividends
Sometimes, companies may issue special stock dividends to shareholders under specific circumstances, possibly due to non-recurring income or asset sales. Special stock dividends are usually not distributed regularly.
4. Convertible bonds or convertible stock dividends
Some companies may offer convertible bonds or convertible stock to shareholders, who can choose to convert them into common shares or hold them until maturity.
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