Why do many firms choose to issue stock dividends? What is the value of a stock dividend

Question:

Why do many firms choose to issue stock dividends? What is the value of a stock to a shareholder?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...