10 stocks are 10 stocks. The equity registration date will be announced before the fund distributes dividends. Anyone who purchases before this date can get dividends. In fact, it is the same whether dividends are distributed or not. Dividends are just a way for the fund management company to continue marketing. Even if dividends are distributed
The net value of the fund will also decline. In fact, it is still the investment income of fund investors. It is recommended to buy the fund after dividends are distributed. The number of 10 cents represents the amount of dividends. For example, 10 cents of 5 yuan represents a dividend of 5 yuan for every 10 funds. Then each fund has a dividend of 5 yuan.
Stocks can receive a cash dividend of 0.5 yuan. If the net value of the fund before the dividend is 1.5, the net value will be normalized after the dividend.
However, currently stock cash dividends are subject to dividend tax, so the actual cash dividends received are less than what was stated in the dividend plan.
The distribution of shares is generally called conversion, that is, the conversion of dividends that should be divided into shares.
For example, if you have 100 shares of a stock, the distribution method for that year is 10:2, that is, 2 shares are added to every 10 shares. Then after the rights are removed (that is, the distribution is completed), the stocks in your hand will become 120 shares.
Of course, the stock price will be adjusted proportionally after the increase, but everyone agrees that high allocation is good, and in general, you will get greater benefits.
The so-called "distribution" refers to "dividends", that is, cash dividends.
For example, 10 for 5 means 10 shares are divided into 5 yuan in cash.
After ex-rights, 100 shares can be divided equally into 50 yuan, of course tax will be deducted.
This is usually good news before a company announces a cash dividend.
Because dividends indicate that the company has more net profits that year, and more net profits indicate that the company has strong profitability.
Although dividends are good, it does not mean that stock prices will rise, because after dividends are paid, some stock prices may be correct, and some stocks may be correct.
Fill in rights: During a period of time after ex-rights and dividends, if most people are optimistic about the stock, the trading market price of the stock will be higher than the ex-rights (ex-dividend) benchmark price.
This market is called supplementary rights, that is, the stock price of supplementary rights will rise.
The difference between transfer, gift and distribution: 1. Share transfer: Capital reserve fund is converted into shares; Share transfer: It refers to converting the company's capital reserve fund into equity capital for free to all shareholders.
2. Send: Bonus shares of the company’s profits; Stock issuance: refers to converting the company’s distributable profits into equity to all shareholders without spending any money; 3. Distribution: Distribute cash dividends to the company’s profits (10% tax exemption).