When will the fund dividends arrive?
The cash dividend will be paid to the investor's account after 15pm on the trading day before the dividend date, and the dividend will be reinvested and paid to the investor's account on the trading day after the dividend date. The cash dividend is paid in cash, and the dividend reinvestment is paid by the fund share. However, different funds receive dividends at different times. Generally, the dividend payment time is T+2~T+7 working days, and the dividend registration date is t day.
Fund dividends are part of the fund's income. Investors can choose whether to pay dividends in cash or reinvest the dividends. The default is cash dividend. If you want to reinvest in dividends, you can set them yourself before dividends. Some funds stipulate that when the cash dividend is less than that of 5 yuan, it will be automatically turned into a dividend for reinvestment.
The advantage of cash dividend is that you don't have to pay personal income tax, and it is safe in advance, which is suitable for investors who are not optimistic about the market outlook, don't like this fund, or have short-term capital needs. The advantage of dividend reinvestment is that there is no handling fee for buying this fund with the allocated money, which is suitable for value investors. Investors who have no cash demand in the short term, that is, if you are optimistic about the market outlook of this fund, you will choose to reinvest in dividends.
Whether you choose cash dividend or dividend reinvestment, you will find that the net value of the fund has decreased after dividend. This is because the dividend has been ex-dividend, but the total assets held by investors remain unchanged.
How often does the fund pay dividends?
There is no fixed dividend time, generally once a year or no dividend, and most funds do not pay dividends. You can't pay dividends until you meet the dividend conditions. The requirements of fund management companies for dividends of closed-end funds are that more than 90% of the net income of funds must be distributed in cash at least once a year.