Cash-And-Stock Dividend

JoeBlow.com, an air pumping company, not a social dating site, earned $2 a share last year. They paid a dividend in cash of 30 cents and a stock divvy of 10 cents.

Why cash and stock? Sometimes, companies just don't have the cash to pay the divvy they feel obligated to pay. Other times, they want modest dilution for a variety of reasons...one being that they think their stock price is currently a tad high and they don't mind taking advantage of its loftiness in essentially "raising" cash, or replacing cash obligations with their shares.

See Payment In Kind for the gory details.