Reinvested and Stock Dividends

What's the difference between a reinvested dividend and a stock dividend?

A reinvested dividend is cash given to you by the company that the company then reinvests in stock for you. A stock dividend (or split received as stock) is shares received based on the number of shares you already own. The difference is that there is no taxable income on a stock dividend, but you have to pay taxes on the value with a reinvested dividend.

Use a Reinvested Distribution Transaction Form to enter a reinvested dividend. Use a Stock Split in the Same Company Transaction Form to enter a stock dividend.