Dividend income is the income of the company's net profit distribution enjoyed by the fund due to the purchase of company shares. Generally speaking, there are two forms of dividend distribution for shareholders: cash dividend and stock dividend. Secondly, the calculation formula of dividend income is equal to holding shares divided by dividend amount per share.

As a long-term investor, the main goal of the fund is to obtain long-term stable returns for investors, and dividends are an important part of the fund's income. The dividend of the invested stock is an important criterion for the fund manager to choose the portfolio.

The fund pays dividends because of its high net worth. Many citizens are afraid of heights and are afraid to buy high-net-worth funds. After the fund pays dividends, the net value of the fund decreases and looks cheaper. But in fact, buying a fund looks at the growth rate, not the absolute value of the net worth share. The net share value has no effect on the investment income of the fund.

How to calculate dividend income?

Dividend income = shares held * dividend amount per share

For example, suppose Xiaohong has a fund share of 2000. After buying the fund, Xiaohong kept it for sale until it rose. But it happened that Fund A paid dividends on April 2 1 and 202 1, and then each fund share paid dividends to 0.2 yuan.

Xiaohong chose the cash dividend method, so Xiaohong had a fund dividend income on April 2 1 day.

Xiaohong's fund A dividend income =2000 *(0.2 yuan/share) =400 yuan.

Abstract: Dividend income refers to the income that the fund enjoys the distribution of the company's net profit due to the purchase of the company's shares. There are two forms of dividend distribution to shareholders: cash dividend and stock dividend. Secondly, the calculation formula of dividend income is equal to holding shares divided by dividend amount per share.