It is a 3 for 2 split, not a dividend the way you are thinking. If you have 100 shares at lets say 43.00 per share on the day of the split (6-24-04) then you will have 150 shares at 28.67 per share. You will not realize any gain in value, only a gain in the number of shares. When a company pays a dividend such as .10 per share then there is a taxable event.
Thanks for your reply.What made me question this was the press release on yahoo where the board of directors announced a 50% dividend payable in stock to holders of .....This seems different from a regular stock split.I guess it's the word payment and dividend that doesn't seem right to me.How can this be a payment if you end up with the same as you started out with? I think the press release could have been worder better.