Stock Split in Form of Dividend One common way to perform a stock split is to declare a dividend payable in company stock. The company adds the par value of the stock distributed to the common stock account and suburacts the same amount from retained eamings $($similar it a eash dividend$).$ Thus, there is no net effect on total stockholders equity. For example, TJX Cumpanies inc, announced a two$-$for$-$one stock split in the form of a stock dividend paid on November $6,2018,$ to the shareholders of record at the close of business on October $30,2018.$ Affer the split, outstanding common shares doubled to approximately $1\mathrm{.}3$ million shares.