Dividends are dividends that a joint-stock company pays to investors based on a certain proportion of their stock shares in profits every 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 enjoy dividends. A joint stock company can only distribute dividends when it earns profits.

Extended information:

According to relevant regulations, fund dividends need to meet the following three conditions:

1. The fund's current year's income must make up for the previous year's losses before distribution can be made ;

2. After fund income is distributed, the net value of the unit cannot be lower than the face value;

3. Fund investment cannot be distributed if there is a net loss in the current period.

Generally speaking, shareholders can realize their dividend rights in three forms:

1. Distribution of cash from the listed company’s profits for the year;

2. New shares will be distributed based on the current year's profits;

3. Use the company's surplus reserve fund to increase share capital.