Legal Definitions - property dividend

A property dividend is a type of dividend paid by a company to its shareholders in the form of property, such as the company's product, instead of cash or stock. It is also known as an asset dividend.

For example, if a company that produces cars decides to pay a property dividend, it may distribute cars to its shareholders instead of cash or stock. This means that the shareholders will receive a physical asset instead of money or shares.

Property dividends are not very common and are usually paid when a company has excess inventory or wants to reduce its stockpile of a particular product. They can also be used to reward shareholders for their loyalty or to increase the company's goodwill.