can an equity shareholder be able to get the stock dividend

do the equity shareholders get the stock dividend

3 Answer(s)


A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits.When a corporation earns a profit or surplus, it can either re-invest it in the business (called retained earnings), or it can distribute it to shareholders. A corporation may retain a portion of its earnings and pay the remainder as a dividend. Distribution to shareholders can be in cash (usually a deposit into a bank account) or, if the corporation has a dividend reinvestment plan, the amount can be paid by the issue of further shares or share repurchase.


hi Garav
pls explain
only debebture holders can get dividend bcoz it is the loan provider to company .
but equity shareholder are the owner of the company .

so , can we give dividend to equity holder or not .
if yes or not pls explain with reason.....