The fund made a profit that year.

The net value of the fund after dividends needs to be above 1.

The fund's current year's income makes up for previous years' losses.

If qualified, the fund company can pay dividends that year. However, whether or not to pay dividends and the number of dividends need to be decided by the fund company, or there are relevant agreements in the fund prospectus.

Need to be reminded that fund dividends do not generate income.

After dividends, the net value of the fund fell. Although dividends were paid, the value of fund shares declined due to the decline in net value.

Therefore, dividends themselves will not generate any income.

It's just the process of money from left hand to right hand.