What are Cash dividend and stock dividend

Cash Dividend:-

If the dividend is paid in the form of cash to the shareholders, it is called cash dividend. It is paid periodically from earnings available to common stockholders. Cash dividends are common and popular types of dividend.

Stock Dividend:-

Stock dividend is paid in the form of the company stock. Under this type, cash is retained by the business concern. Stock dividend is bonus issue. This issue is given only to the existing shareholders of the company at a certain percentage. For example if a person have 200 no. of shares of a company and the company declares a 10% stock dividend then the person will get additional (200 * 10% = 20) 20 shares as a stock dividend.