Full Answer Section

The main difference between a stock dividend and a stock split is that a stock dividend increases the number of shares outstanding, while a stock split does not. This means that a stock dividend can dilute the earnings per share of a company, while a stock split does not.

Which would I prefer as a stockholder?

As a stockholder, I would prefer to see the company that I researched declare a two-for-one stock split. This is because a stock split does not dilute the earnings per share of a company, and it can make the stock more affordable for investors.

One real-world example of my preference is the stock split of Apple in 2014. Apple split its stock two-for-one, and the stock price subsequently rose. This is likely because the stock split made the stock more affordable for investors, and it also showed that Apple was confident in its future growth.

Conclusion

Both stock dividends and stock splits can be beneficial for shareholders. However, I believe that a stock split is generally the better option for shareholders. This is because a stock split does not dilute the earnings per share of a company, and it can make the stock more affordable for investors.