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TeachMeFinance.com - explain stock dividend stock dividend -- a portion of the net earnings of a corporation paid to the corporation's stockholders of record, with the payment consisting of additional shares of stock rather than cash. historic definition... Stock dividend -- A dividend payable in the stock of a company which declares such a dividend or (occasionally) in the stock of a company owned by it. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.