Stock "dividend" vs "split"

[shri]

Can someone tell me how a stick dividend is miraculously different from a split? I don't get it..

A stock dividend is a dividend paid to shareholders in the form of additional company shares instead of cash. These dividends do not affect the value of a company, but they dilute its share price.

Taken from rumours about Tesla issuing a stock dividend - but this sounds exactly the same as a split.

[RobRoy]

Well I guess there are a few different approaches, have not read up on what Tesla is up to specifically.

Company can issue new shares and give to shareholders, this is dilutive in the same way as a stock split.

Company can purchase shares in the market but instead of cancelling the shares can issue them to shareholders, that would be equivalent of an actual dividend.

[shri]

Company can purchase shares in the market but instead of cancelling the shares can issue them to shareholders, that would be equivalent of an actual dividend.

Yep, that's what shares in lieu of cash programs do.. I suspect this is usual tesla bumbling around on social media trying to paint a split as a 'dividend'.

Wanted to see if I was missing something super obvious..

[TheBrit]

Company can purchase shares in the market but instead of cancelling the shares can issue them to shareholders, that would be equivalent of an actual dividend.

What companies do this? Its cheaper and easier to cancel Treasury shares then reissue pro-rata to current shareholders. Be very suspicious of any company management who issue bonus shares or any similair bullshit, they are just incurring costs for no tangible benefit of shareholders.

If you have a pie and its divided into 8 pieces you don't get more pie by dividing it into 16 pieces instead.

[shri]

What companies do this? Its cheaper and easier to cancel Treasury shares then reissue pro-rata to current shareholders.

Isn't that what HSBC would do? Buy back and then distribute ue them as part of the dividend if you opted for shares?

Or were they cancelling them and then creating new shares at time of dividend?

[Morrison]

Depending on your tax jurisdiction and the kind of stock split the split might incur tax liability, even if you don’t sell your stocks or parts of it.

Very well explained here:

https://www.munkert.de/steuerliche-s...s-apple-tesla/

[RobRoy]

What companies do this? Its cheaper and easier to cancel Treasury shares then reissue pro-rata to current shareholders.

Fairly common in certain countries to offer the shareholder the option between cash or shares. A so called scrip dividend.

[shri]

Matt Levine on Stock Splits

https://www.bloomberg.com/opinion/ar...s-are-good-now

[PetravanderVegt]

In my line of work, a dividend is cash flow, meaning cash coming your way (obviously). Anything else is just not dividends.

This Tesla case, I consider this a nice social media spin, but it is a split.
The Twitterverse is mentioning Amazon planning to do the same.

Have a great day!

[shri]

The Twitterverse is mentioning Amazon planning to do the same.

Google/Alphabet, Amazon and Tesla (hopefully) are splitting in the next few months.