Offer your thoughts or opinion on the input financial query or topic using your financial background.

Why do many British companies offer a scrip dividend option in lieu of cash?
There are quite a few reasons that a company may choose to pay dividends rather than hold cash [increasing the share value].   Of couse there are equally other set of reasons why a company may not want to give dividends and hold on to cash. Related question here Please explain the relationship between dividend amount, stock price, and option value?