This dividend is paid at least once a year.
Dividends are dividends that a joint-stock company pays to investors based on a certain proportion of their stock shares in profits each year.
It is the return on investment of listed companies to shareholders.
Dividends are a way of distributing the current year's income to shareholders after withdrawing statutory provident funds, public welfare funds and other items in accordance with regulations.
Usually after shareholders receive dividends, they will continue to invest in the company to achieve the effect of compound interest.
Common stocks can enjoy dividends, while preferred stocks generally do not.
A joint stock company can only distribute dividends when it earns profits.
Dividends, also known as profit sharing, are short for dividend distributions.
The "International Conference on Dividends" held in Paris in 1899 pointed out: "Dividends refer to the remuneration of a certain proportion of profits from an enterprise unit's promotion to the general employees of the enterprise unit. Such remuneration is determined in advance according to a free agreement plan.
The ratio of promotion; once the ratio is determined, it cannot be changed by the employer."
Professor Robert Sonnard of the University of Chicago defines dividends as: "The so-called dividends, simply put, refer to the distribution of a portion of the employer's profits to employees in addition to their normal salaries."
"Cihai" explains dividends as follows: "At the time of each final accounting, an enterprise group allocates a portion of its surplus to users or workers. It is called dividends, also known as bonuses, and it means rewarding labor subsidies and wages."
Mr. Lu Guang also has a similar definition: "In order to increase production and reduce costs through human cooperation, the employer, according to a free contract, distributes the profits obtained by the business unit to the employee in accordance with a predetermined ratio**
*Enjoy".
In addition, Mr. Li Shanmeng's definition is: "A business company that makes profits during a year of economic prosperity distributes a portion of its net income to its employees, which is called dividends."
Mr. Du Gongbi also pointed out: "At the end of each business year of a company, after final accounting, if there is a surplus, it is customary to first pay the profit-seeking enterprise income tax, set aside the statutory surplus reserve, and set aside fixed-rate dividends. The remainder will be dividends and bonuses, which are the capital contributions of shareholders.
If a certain number of Jiahui employees are transferred, it will be regarded as dividends. "According to the Taiwan Company Law, a company cannot distribute dividends and bonuses when it has no profit.
However, when the statutory surplus reserve exceeds 50% of the total capital, or the surplus reserve set aside in a year with a surplus exceeds 20% of the surplus, the company may use the excess portion to distribute dividends and dividends in order to maintain the stock price.
dividend.
This shows the restrictions on the distribution of dividends.
Introduction: There are two methods of dividend distribution: dividend reinvestment and cash dividends. The difference between these two dividend methods is that one is simple interest appreciation, while dividend reinvestment is compound interest appreciation.
Therefore, most customers prefer to choose the dividend reinvestment method.