It is also worth mentioning scrip dividend programmes, which allow investors to receive new shares in the company rather than a cash payout. A business operating a scrip dividend will give investors the choice of receiving the cash dividend or new shares. The value of the cash dividend is usually higher than the scrip dividend price, but taking new shares is a cost-effective way of increasing your stake in the business and benefit further from future dividends or special payouts. Scrip dividends, unless countered with a measure like a buyback, do dilute investors by releasing more equity. However, it allows businesses to make a return to shareholders without having to spend any cash. Scrip dividends can also have advantages. In the UK, for example, scrip dividends are exempt from stamp duty and investors can receive a tax benefit in certain circumstances.