A stock dividend is a dividend payment made in the form of additional shares rather than a cash payout. Companies may decide to distribute this type of dividend to shareholders of record if the company's availability of liquid cash is in short supply.
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An emergency fund is a financial safety net for future mishaps and/or unexpected expenses. Financial planners recommend that emergency funds should typically have three to six months' worth of expenses in the form of highly liquid assets. Savers can use tax refunds and other windfalls to build up their fund.
