Stock Dividends Announcement Custom Research Paper

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We are glad to announce that Best Ski will be giving a 10 percent stock dividend this year instead of the traditional quarterly $1 dividend. This decision was reached after thoughtful deliberations by the company’s management and the board of directors. The stock dividend is in many ways superior to cash dividend that the company has been providing in the previous accounting periods. First, stock dividend helps keep and improve company’s economic value because money that would have otherwise be spent as dividend is directed to revenue generating projects (Tajirian)…..

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capital growth on your respective investments. Secondly, the economic value gained through the retained cash improves Best Ski’s creditworthiness with financiers, meaning that it would now be easier to get investment credit from various sources. Thirdly, stock dividend provides, you…..

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In conclusion this is therefore a win-win situation, where the company gets more investment funds and its shareholders get the guarantee of increased future returns. We therefore urge you to exercise your shareholder rights when the dividends are released. Thank your for your continued support and we look forward to a more cooperative future.

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