How does a company pay out a stock dividend of 10% if you own less than 10 shares?
I know that if a company announces that there will be a 10% stock dividend payment it’s the equivalent of getting one extra share for every ten you won. What if you own less than 10 shares though? How can they pay a partial stock dividend?
I actually mean dividends paid in stock, not money.
They send you a check for the value of the dividend. Even if you owned more than 10 shares, you would receive a check for the value that was not an even number of shares.