Stock Dividend

The Board of the company announces that shareholders "As of" a certain date receive a stock dividnd or a stock split or similar on a Payable Date. So if you were the owner of record on Close of Business the business day preceding the ex-div date, you will receive the stock dividend.

Trades between the ex-div date and the Payable date trade the stock with a Due Bill attached. The Due Bill means you are trading both the stock and the stock dividend.

The acquisition date of the stock dividend stock is the same as the underlying stock itself.

The date acquired, which goes on your schedule D column (b) when you sell if you don't enter VARIOUS, is that of the underlying stock.