Dividends are dividends paid to investors by a joint-stock company every year according to a certain proportion of its share in profits. It is the return on investment of listed companies to shareholders.

Dividend is a way to distribute the income of the current year to shareholders after the statutory provident fund, public welfare fund and other items are withdrawn according to regulations. Usually, after receiving dividends, shareholders will continue to invest in the enterprise to achieve compound interest.

common shares can enjoy dividends, while preferred shares generally do not. Joint-stock companies can only distribute dividends when they make profits.

Extended information:

According to relevant regulations, fund dividends need to meet the following three conditions:

1. The fund can not be distributed until the current year's income makes up for the previous year's losses;

2. After the fund income is distributed, the unit net value cannot be lower than the face value;

3. If the fund investment has a net loss in the current period, it cannot be distributed.

Generally speaking, shareholders can realize the dividend right in three forms:

1. Distribute cash with the profits of the listed company in the current year;

2. Distribute new shares with the profits of the company in the current year;

3. convert the company's surplus reserve fund into share capital.

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