Dividend in shares

The distribution of dividends can coincide with a capital transaction. In this case, the profit distribution and capital increase securities can be the same, which entails an increase in capital released from profit. It is also possible to have a share capital increase that is partly charged to profits and partly with a cash payment. Also, they can come from the distribution of shares from the company's treasury stock. This process involves a reduction in reserves and an increase in share capital.