Forms of

Dividend
Bonus
Policy
Discover the different types of dividend
policies, including cash, stock, script,
bond, property, special, and bonus share
policies.
Types of Dividend Policies
Cash Dividend Policy Stock Dividend Policy

Companies distribute cash to shareholders as Shareholders receive additional shares of stock

dividends. instead of cash.

Script Dividend Policy Bond Dividend Policy

Dividends are paid out in the form of promissory Companies issue bonds as dividend payments.
notes.
More Dividend Policies

1 Property Dividend Policy

Dividends are distributed in the form of assets

or property.
Special Dividend Policy 2
Occasional extra dividends paid to
shareholders apart from regular dividends.
3 Bonus Share Policy

Additional shares are given to shareholders

based on their existing holdings.
The Cash Dividend Policy
Under the cash dividend policy, companies distribute a portion of their earnings to shareholders in the form of cash. This
allows shareholders to directly receive income from their investments.
The Stock Dividend Policy
Instead of distributing cash, companies following the stock dividend policy issue additional shares of stock to
shareholders. This can increase the number of shares an investor holds, but does not provide immediate liquid assets.
The Script Dividend Policy
In the script dividend policy, dividends are paid out in the form of promissory notes or IOUs. These notes can usually be
converted into cash or stock at the discretion of the shareholder.
The Bond Dividend Policy
Companies may choose to distribute dividends in the form of bonds. These bonds
provide interest payments over time and can be redeemed for cash upon maturity.
Special Dividend Policy
The special dividend policy allows companies to distribute extra dividends to
shareholders on top of regular dividends. These additional payments are usually
made when the company has exceptionally good financial performance.
Bonus Share Policy
Under the bonus share policy, companies issue additional shares to shareholders
based on their existing holdings. This increases the number of shares an investor
owns without additional cost.