A dividend made up of shares of the paying firm's stock. A stock dividend is often used in place of or in addition to a cash dividend if the firm wishes to conserve cash. Unlike a cash dividend, a stock dividend is usually not taxable to the shareholder when it is received, but rather when it is sold. Stockholders who are supposed to receive a fractional share will often receive a check for the amount equal to the market value of the fractional share. Payment of a stock dividend is indicated in stock transaction tables in newspapers by the symbols b and t. See also scrip dividend.