My question is what prevents companies to use all their extra money to collect bigger bonuses and then leave no money left over for the investors.
Nothing prevents it, but corporate governance discourages it. If the managers took all of the profits for themselves, the board could fire them, or if the board was complicit, the shareholders could vote the ...
Dividends could be paid out to investors through cash dividends or stock dividends. In terms of the stock dividend, besides tax advantage when they don't sell out the shares compared to cash dividends, what are the other benefits from this?
A stock dividend is the combination of two:
Pay $X dividends
Sell Y shares to the one receiving $X dividends at a ...
You can go here to figure most of this out. I input your data and this is what came out.
fed 14,709 prov 7,784
Note the cap gains are taxed at half the actual amount so $20k (from anywhere in the world) counts as $10k in income.
The foreign dividends are just straight income but ...
Importance of a stock dividend? None. It doesn't matter.
At best, you could make a case that after a stock dividend then because you own more shares, the compounding effect could be greater.
A stock dividend doesn't affect total cost basis but since you now own more shares, your cost basis per share is lowered. So that means a bit of additional ...