Dividend is the interest of stock, which refers to the income distributed to shareholders by joint-stock companies from the after-tax profits of provident fund and public welfare fund according to the dividend rate. Although dividends are also the returns distributed by the company to shareholders, the difference between dividends and bonuses is that the interest rate of dividends is fixed (especially preferred shares), while the amount of dividends is usually uncertain and fluctuates with the company's annual distributable surplus. So some people call the income of common stock dividend, and dividend refers to the income of preferred stock. Dividends are the residual profits distributed to shareholders according to the shareholding ratio after dividends are distributed by listed companies. Getting dividends is the basic purpose of investors to invest in listed companies, and it is also the basic economic right of investors. Dividends and bonuses together are called dividends.

Dividends refer to the profits distributed to shareholders by listed companies when distributing profits. Generally, every 10 share will be paid XX yuan, and the shareholders will also deduct the tax paid when they get it. The profits of ordinary shareholders that exceed dividends are called dividends.

There is no fixed amount of dividends received by ordinary shareholders, and how much dividends an enterprise distributes to shareholders depends on the annual operating conditions of the enterprise and the overall arrangement of strategic decisions for its future business development.

In the United States, cash dividends paid by most companies account for about 40%-60% of the company's after-tax net profit. Most of the company's dividends are paid quarterly. Distribute a certain amount or a certain percentage of dividends every quarter. If there is surplus, the company can also issue it at a certain time.

The content of this article comes from People's Republic of China (PRC) Financial Code: Application Edition by China Law Publishing House.