Hello everyone. I'm a retiree and, on the advice of my broker, just bought 1,000 shares of VGR (at $17.71 for my self directed 401k.I like the 9.10 dividend, but my question concerns another annual payout to shareholders that my broker told me about.....something like a 5 percent extra cash dividend.Can someone, please, explain this...in layman's terms? As you can, probably, tell...I'm not a really sophisticated investor.And is the extra "dividend" paid the same time as one of the quarterly dividends ?Thanks, in advance, for any replies.
It is a stock dividend of 5%. A 105/100 split. You can check the history here....http://www.vectorgroupltd.com/investFaqs.asp
how does a stock split work out as a div?