There are two ways to pay dividends, cash and stock, which are similar to "sending X yuan for every 10 share", that is, sending X yuan in cash for every ten shares. "X shares for every 10" is to tell people who buy stocks that they will give you 10 shares for every 10 shares.
The general dividend payment date is ex-dividend date, but there are some special circumstances. This still depends on the arrangement of listed companies, and it will definitely arrive within half a month.
I. Stock dividends
Investors buy shares of a listed company, invest in the company, and enjoy the rights of dividends of the company. Generally speaking, there are two forms of dividends of listed companies; To distribute cash dividends and stock dividends to shareholders, listed companies can choose one or both according to the situation.
Second, the issue of rights issue.
Rights issue is also a common situation for investors. It is not the same as sending shares to increase share capital. Not profit distribution, but the process of investors reinvesting in the company. Rights issue refers to the listed company paying a certain number of shares to shareholders in proportion in order to further absorb funds. It is not a dividend in itself, but a way of financing. It is a stock issue of a listed company, and the shareholders of the company can freely choose whether to buy the allocated shares.
Third, the impact of stock dividends on stock prices.
Changes in share price before dividends: Due to the difference in tax deduction, some investors in the market do not intend to hold shares for a long time and do not want to be taxed, so they will sell their shares before dividends and recover their funds, so there is the possibility that the stock price will fall before dividends. However, there are still some investors who will buy stocks, because these investors want to get dividends, which will also lead to the possibility of stock price rise.
Share price changes after dividends: From the above, we have made it clear that there are two ways to pay dividends, namely, sending cash and sending stocks. Will have a normal callback effect on the stock price, which means there will be a certain decline.