The cash dividend payout ratio is the ratio of cash dividend payout ability based on the current operating net cash flow. Its calculation formula is: cash dividend payment rate = net cash flow generated by operating activities/cash dividend × 100%.

At present, there are two main ways of fund dividend: one is cash dividend and the other is dividend reinvestment. According to the Measures for the Administration of the Operation of Securities Investment Funds, if the investor does not specify the dividend distribution method, the default income distribution method is cash dividend. The default dividend method of open-end funds is cash dividend, but the basic people can change it independently according to the individual's specific situation and the changes in the fund market.

For example, if you hold 6,543,800+shares of a fund, and now each share of the fund pays a dividend of 0.05 yuan, assuming that you choose the cash dividend method, then the basic people can get a cash dividend of 0.5 million yuan;

Assuming that dividends are reinvested and the net value of fund shares on the dividend base date is 1.25 yuan, then the citizen can be divided into 5,000 yuan1.25 yuan/share = 4,000 fund shares, and the fund shares will become104,000. As the total assets of the fund decreased due to dividends, the net value of the fund decreased after dividends.

Baidu Encyclopedia-Fund Dividends