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A
Accrued Dividend
When a company pays cash dividends on its stock, it may not issue them to employees who hold unvested restricted stock. Instead, the company accrues the dividends until the underlying stock vests. The company then pays the dividends in cash or in additional shares of stock, depending on the plan. If the grant does not vest and is forfeited, the accrued dividends are not paid. For more on dividends with restricted stock and RSUs, see the FAQs in the section Financial Planning: Dividends.
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