Scrip Dividend

A scrip dividend is a way companies pay shareholders dividends by giving additional shares instead of cash. Instead of receiving money, shareholders get extra company stock proportionate to their existing holdings. This allows the company to conserve cash while rewarding investors. The added shares increase the shareholder’s total investment, possibly benefiting from future growth and dividend payments. Scrip dividends are often offered at a discounted rate to encourage participation but don't impact the company’s cash flow directly. Overall, it’s a flexible way for companies to reward shareholders while managing liquidity.