Different kinds of dividends of common stock.
- Cash dividends
Normally expressed as a cash amount per share (USD 0.35 per common share).
- Stock dividends
Usually issued in proportion to shares owned. For example, for every 100 shares of stock owned, a 5% stock dividend will yield 5 additional shares. If any fractional shares are left over, a cash dividend is paid. Stock dividends are similar to stock splits - both increase the number of shares outstanding and reduce the value of each share.
- Property dividends
Apart from cash and stock dividends, companies can also pay property dividends with tangible assets owned by the issuing company, usually in the form of products or services that the company produces.
- Special dividends
Rare and can occur for a variety of reasons, such as very strong earnings results, company restructuring or liquidation of an investment. They can take the form of cash or stock, but unlike regular dividends, they are unlikely to be repeated in the future. (For example, Telular Corporation decided to pay a one-time special cash dividend of USD 1 per share in Nov. 2010)