<P> Stock or scrip dividends are those paid out in the form of additional stock shares of the issuing corporation , or another corporation ( such as its subsidiary corporation ) . They are usually issued in proportion to shares owned ( for example , for every 100 shares of stock owned , a 5 % stock dividend will yield 5 extra shares ) . </P>
which kind of dividends typically pay dividends with additional shares of the corporation 's stock
Stock or scrip dividends