How to deal with the annual profits of listed companies?

(1) Profit distribution of listed companies is not mandatory. However, generally responsible companies will pay dividends every year, and will also share some of the profits earned with shareholders. Other companies may issue it twice a year. There is little quarterly distribution, which puts great pressure on the company's cash flow.

(2) Part of the profits of listed companies will be distributed as dividends, and the rest will be included in undistributed profits, which can be used for company control and generally used for reinvestment.

(3) There are two ways to distribute dividends, one is to distribute cash directly to shareholders, and the other is to distribute bonus shares, that is, to exchange cash for stocks instead of cash. We can think of dividend-paying shares as a combination of two behaviors, that is, the company gives you cash first, and then you use this cash to buy shares of the company (these shares are newly issued shares).

(4) Whether it is cash dividends or dividend-paying stocks, they are automatically recorded, and you don't have to do anything.

(5) Whether it is a dividend-paying stock or a dividend-paying stock, the stock price should be ex-dividend. The principle is that the total market value of the company remains unchanged before and after dividends. Therefore, as an investor, dividends will not change the market value of your stock.