The purpose of this study is to determine the return of the reaction of the announcement of stock dividend. This study uses event study approach, where the observation of the abnormal return during the event period, which is seven days prior to the announcement of up to seven days after the announcement. The method used is quantitative method. Hypothesis testing is used to see the significance of abnormal return values occurring in the event by comparing t-arithmetic with t-table and test independent sample of t-test to determine differences in the value of abnormal return of some subsample. The results of this study indicate that: 1) no positive abnormal return significantly to the announcement of stock dividend around the event period; 2) no average abnormal return is greater in companies issuing initial stock dividend compared to companies that issue stock dividend subsequent; 3) no average abnormal return is greater in companies with issuing high stock dividend ratio compared to the company that issued the low stock dividend ratio.