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What are the various forms in which dividends can be paid?1) Cash dividends are the first form in which dividends are paid out in currency, usually by check or electronic cash. These dividends are the form of investment income and are taxable to the recipient in the year they are paid. This is used to share the corporate profit with the shareholders of the company.
2) Stock dividends are the second form in which dividends are paid out in form of additional stock shares of the issuing corporation. They differ in the issuing of the shares owned by people around. If payment involves issue of new shares then it increases total number of shares while lowering the price of each share without changing market value.
3) Property dividends are the third form in which dividends are paid out in the form of assets from the issuing corporation or another corporation, such as a subsidiary corporation. They are rare and mostly used in securities of companies owned by issuer
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