Sources Of Dividend Dividends

Dividends are the profits that the shareholders share regularly from a listed company at a certain rate. Dividends are the residual profits allocated to shareholders by the shareholding ratio after the dividends are paid out by listed companies. Dividends and dividends are the basic purpose of investors to invest in listed companies and the basic economic rights of shareholders.

Generally speaking, after a financial year's settlement, a listed company will distribute part of its profits to shareholders as part of its shareholding.

According to the management and arrangement of information disclosure of listed companies, China's listed companies must publish their annual financial reports within 120 days of the end of the financial year, and the profit distribution plans should be announced in the annual reports, so the dividend payouts of listed companies are generally concentrated in the second and third quarters of next year.

In the distribution of dividends, first of all, the preferred shareholders exercise the profit distribution according to the stipulated dividend rate, and then the common shareholders make dividends according to the remaining profits, and the dividend rate is not necessarily fixed.

After dividends have been allocated, dividends can be granted to common shareholders if listed companies still have profits to distribute.

How much dividends and dividends a shareholder has in a year depends on the operating performance of listed companies, because dividends and dividends are extracted from after tax profits, so the profit after tax is the only source of dividends and dividends, and the highest limit of dividends payable by listed companies.

When dividends are paid on a listed company, the total amount will not be higher than the after tax profit per share, unless there is a profit from the previous year.

Because the company law of various countries has limited provisions on dividend payments, if our country stipulates that the listed companies must withdraw capital reserve from the after tax profits according to the prescribed proportion to make up the company's losses or pform into company capital, the total dividends and dividends allocated by the listed companies are always less than the company's after tax profits.

Since the after tax profits of listed companies are both the source and the limit of dividends and dividends, the operation of listed companies is directly related to the dividends and dividends.

After the end of a financial year, dividends and dividends can be made when a listed company is profitable.

And the more profits, the more the after tax profits used to distribute dividends and dividends, the greater the dividends and dividends.

In addition to business performance, dividend policies of listed companies also affect dividend and dividends.

After the profits of listed companies, their after tax profits can be used for two purposes. Apart from dividends and dividends, capital gains should also be added to expand reproduction.

If the dividend policy of a company tends to the long-term development of the company, it may be possible to turn dividends into capital reserve without dividends or dividends.

On the contrary, dividends will be larger.

The distribution of dividends and dividends is affected by the state's tax policy.

Shareholders of listed companies, whether natural or legal persons, must bear the duty of paying taxes according to law. For example, there is a clear stipulation in China that shareholders must pay income tax on stock dividends (dividend dividends), the proportion of which is based on the denomination of shares, and 20% of the income tax over a one-year fixed deposit rate.

When a listed company pays dividends, it must comply with the law and must not violate the articles of association of the company. These Provisions also affect the dividend and dividend payments to a certain extent.

These principles are as follows:

1. it is necessary to make necessary deductions in accordance with the law so as to allocate dividends and dividends after tax profits.

The specific deduction items and proportion should be governed by laws and articles of association.

The dividend resolution adopted by the shareholders' meeting and board of directors of a listed company can not be contravene with the provisions of the law and the articles of association.

In the post tax profits of listed companies, the order of distribution is as follows:

(1) to make up for the losses of the previous year.

(2) withdrawal of statutory surplus provident fund.

(3) withdrawal of public welfare funds.

(4) withdrawal of any provident fund.

(5) payment of preferred stock dividends.

(6) to pay dividends on common stock.