ATFXDividends10send8What does yuan mean? There is a risk of loss in investment

Stock dividends are a way for listed companies to distribute profits to shareholders, usually in the form of cash dividends and stock dividends."10send8element"It is a term among them, let's take a look at its meaning and its impact on stocks.

"10send8element"The meaning is that every time a dividend is held10Shareholders of stock will receive8A cash dividend of yuan. Listed companies distribute some or all of their surplus reserves and current payable profits to shareholders in cash through cash dividends. Shareholders are required to pay income tax.

By using cash dividends, profits can be distributed to shareholders without increasing share capital, which does not put too much pressure on the company's future operations. In contrast, stock dividends will have a significant impact on future annual earnings per share. In a bull market, shareholders prefer dividend reinvestment, while in a weak market, they value dividend distribution more.

For individual investors, the interest rate applicable to cash dividends of listed companies in China is20%. Institutional investors, on the other hand, do not need to pay additional taxes when receiving cash dividends due to the need to pay income tax to avoid double taxation.

"10send8element"The impact on stocks is as follows:

Price wise: Cash dividends can lead to a decrease in stock prices. This is because the total assets of the company will decrease after dividends are distributed, and in order to maintain balance, the stock price will be correspondingly lowered. This reduction is called ex dividend and is usually carried out on the first trading day of the dividend registration date.

In terms of returns: Cash dividends will increase investors' returns. Through dividends, investors can receive cash inflows and improve investment returns. At the same time, investors can also use the dividend income to reinvest in other products or purchase additional stocks, achieving the compound interest effect of investment.

in summary,"10send8element"It is a common stock dividend method, also known as dividend payout. As for whether its impact on the stock market is positive or negative, it is also necessary to consider the company's dividend ratio compared to other companies in the same industry.