Both funds and stocks have dividends, and there will be announcements when dividends are distributed. As long as it is held before the registration date, it can participate in dividends, regardless of the number of shares held and the number of funds held. There are many similarities in dividends between the two, but there are also essential differences.

Which is better, fund dividend or stock dividend?

It is not absolutely good, because investors who participate in dividends can't get extra money, because they will be ex-dividend and then the price will drop accordingly. The total assets in the investor's account have not changed before and after the dividend, but from the perspective of tax deduction, the fund dividend is better because there is no need to pay personal income tax, but if it is sold after the dividend, it will be subject to personal income tax if it is held for less than one year.

After the fund pays dividends, the total assets of the account have not changed. Many investors have to pay taxes even if the total assets remain unchanged after the stock dividends, and the market value has to pay taxes after deducting cash, which is equivalent to a decrease in total assets.

The difference between fund dividend and stock dividend;

1 the difference of personal income tax: fund dividends are not taxed, but stock dividends may be taxed;

2 Essential difference: Fund dividends can't bring extra income to investors, while stock dividends are part of the profits of listed companies that are returned to investors.

3. Differences in the optionality of dividend methods: Investors can choose the dividend method when the fund pays dividends, but investors cannot choose the dividend method when the stock pays dividends.

Whether stocks and funds pay dividends is not the focus of investors' attention. Stocks mainly look at the company's performance, and funds mainly look at the management ability of fund managers.