Legal Definitions - asset dividend

An asset dividend is a type of dividend that a company pays to its shareholders in the form of property, such as the company's product, instead of cash or stock. This is also known as a property dividend.

For example, if a company that produces cars pays an asset dividend, it may distribute cars to its shareholders instead of cash or stock. This means that the shareholders can either use the cars or sell them to make a profit.

Asset dividends are not very common, but they can be useful for companies that have excess inventory or assets that they want to distribute to their shareholders.