A stock dividend is taxable income because it’s a payment directly to you based on the company’s success. When a company issues a stock dividend, it is distributing a portion of its earnings to shareholders in the form of additional shares, which can have tax implications depending on local tax laws. In most cases, even though you receive additional shares instead of cash, the value of the dividend is considered taxable income in the year it is received.
A stock dividend is taxable income because… it divides your stock in half, giving you twice as much money. it’s the interest that you earn based on the amount of stock you hold. it’s a payment directly to you based on the company’s success. it’s a calculation of your taxes by dividing your stocks by your tax bracket.
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