Do "stock dividends" rather than cash dividends still exist?

Question

This is not a regular dividend, where a fraction of earnings is given per share. It would be, for example, if a company decided to give a 2 percent share dividend, at which point an individual holding 100 shares would receive two new shares and thus hold a total position of 102 shares.

Now, do these types of dividends still exist? If so, do any major companies do it (I'd say over 500 mil cap at least, or top few in industry)? Any examples?

Thanks for your help.

Answer 1

Yes -- they still exist.  They are most commonly used for preferred stock of pre-IPO companies.  Legally, any company can issue a stock dividend.