The significance of high school demonstration
Cash dividend is a way for a company to pay dividends to its shareholders. In addition to cash dividends, there are stock conversion and stock transfer. Cash distribution is relatively simple and rude, that is, cash is distributed directly to shareholders. Whether it is a major shareholder or a small retail investor, listed companies will choose a time point as the standard, and those who hold shares before this time can get cash dividends. The amount of dividends depends on the number of shares, and whether cash distribution belongs to high cash distribution can be judged according to its share price and the number of shares paid dividends per share. It can be regarded as a good gimmick for listed companies to attract investors for a period of time and cause the stock price to rise. Many companies that have released high-auction cash-out news have gained a certain degree of share price growth.
Other dividend distribution methods of listed companies
In addition to cash dividends, listed companies also have dividend methods such as stock transfer and stock conversion. Converting shares means that listed companies convert the company's capital reserve into equity and distribute it to investors. Strictly speaking, this is not a dividend return to shareholders. And sending shares is a better way to pay dividends. Is to distribute undistributed profits to shareholders in the form of equity. For example, a shareholder has 10 shares, and the listed company implements the policy of 10 shares, then this person's rights and interests become 20 shares, but the holding value remains unchanged, that is, the original value of 10 shares is equal to the present value of 20 shares. The significance of this to shareholders is that after the stock price falls, many investors can buy stocks that they can't afford, and after the company's stock price rises, these stocks will have higher value.
The significance of high school cash to investors
In fact, for retail investors, the significance of high dividends is not great, because the theoretical market value has not changed after ex-dividend, and some taxes will be levied after holding shares for less than one year. Most people will not hold shares for more than one year, and the income from high dividends is not much for these retail investors.