Some Other Types of Dividend

C. Bond Dividend 

“It is a kind of dividend in which stockholders receive bond. It is distributed only that condition    when the company declares dividend helps to postpone the payment of cash. These are given when the   firms are unable to take the burden of interest of loans” (Van Horne, 1971).

D. Property Dividend

“Property dividend is a kind of dividend which is given in the form of property instead of cash. This method is given in the form of property instead of cash. This method is rarely used in practical. Company owning products and securities of subsidiaries are the examples that have been paid as property dividend”(Van Horne, 1971).

E. Interim Dividend

“Generally dividend is declared in the end of the financial year. This is called regular dividend.  But when management declares dividend before the end of financial  years, it is called interim dividend”(Van Horne, 1971).

F. Scrip Dividend 

“Scrip dividend is a form of promissory note promising to pay the holder at a specified later date. The scrip may be interest bearing or not. Issuing of this note indicates that the company has shortage of cash to distribute as a dividend. This type of dividend is very popular to use” (Van Horne, 1971).