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What is a stock dividend? A stock dividend is the payment a trader obtains from the company he/she is presently investing in. The company pays the dividend from the earning it acquired within its financial year. Hence, if the company does not make a profit, dividends are not likely to be given to the investor. The dividend is generally paid in two parts, an interim and a final dividend. This means an investor who has shares in a company for one year; he or she will ordinarily obtain two lump sum payments annually (most often as cash payments). To collect a dividend, you must have the stock before the ex-dividend date. The dividend is given to the investor on the payment schedule set by each individual company. The dates can be obtained from a company's official website in the investor relations section.