Category: Money Tips Date: 2006-10-04
Company shares after a period of time (usually one year), if operating properly, resulting in a profit, we must pay dividends to shareholders and dividends. Its delivery are generally three types: a form of cash paid to shareholders. This is the most common and the most common form, in the United States, about 80% of the Company are carried out in this form. Second, placement of shares to shareholders to take this approach is mainly to put money in the company to be used to expand its operations in pursuit of development of the company's long-term interests and long-term goals. The third form of in-kind distribution, that is, the company's products as dividends and dividend distribution to shareholders.
Dividend payout in the eve of the shareholders holding shares must be closely related with the dividend payable date of the four, the four dates are:
1. Dividend was declared that the company's board of directors will be the announcement of dividend payout to the public's time.
2. Dividend day, that dividends paid to shareholders, the official date.
3. Stake in the registration day, that confirmed their participation statistics and current dividends distributed to shareholders date.
4. Ex-dividend day, that is no longer enjoy the current dividend date.
In these four dates, it is particularly important to shareholders of record date and the ex-dividend date. Because every day there are numerous investors in the stock market to buy or sell, the company's shares changed hands continuously, which means that shareholders of the company are also constantly changing, so the company board of directors in determining the dividend payout, we must a clear announcement to shareholders of record date, payment of dividends to shareholders of record on the Day of the company's roster shall prevail. Where in this day shareholders of record roster of investors, namely, recognition of its shareholders entitled to dividend and bonus issue. If the stock holders equity without prior registration of transfer, then sell their stock's name remains on the register of shareholders, so that companies still recognize the recognition of its shareholders, the current dividend will be assigned to the shares in accordance with the provisions of the seller and the not the present holder. Thus, buying the stock do not necessarily receive dividends only when the stock company registered before that date to apply for registration of transfer of the registration procedures, in order to obtain the normal dividend dividend income.
As for the ex-dividend day to grasp, is also crucial for investors, as investment in the ex-dividend on the day of or after the purchase of shares, has no right to participate in this month's dividends distribution, therefore, ex-dividend day price of the stock with the ex-dividend day change. In general, the ex-dividend date is the ex-dividend day stock quotes, reference price, that is, before ex-dividend day closing price minus the price of a share dividend. For example, a certain stock plans to distribute 1 yuan per share, dividends, such as the ex-dividend day price of 18 yuan per share, then the ex-dividend date should be indicative quotes on that day was 17 million (18 per minus 1 million). Control before and after ex-dividend stock price changes of this kind is conducive to investors in the purchase price of completing the appropriate delegated to effectively reduce the cost of purchased shares, reducing unnecessary losses.
For, the long-term investment plans for investors who can take advantage of low share price goes ex-dividend on the eve of when to buy the stock transfer, in order to enjoy the dividend income. Sometimes, the price appears in the ex-dividend on the eve of the weakness of the main reasons is that at this time more short-term investors. However because of short-term investor in general tend to households, non-interest income, so most of the ex-dividend on the eve of the stock managed to dispose of, or even lower price also expense. Therefore, it is in long-term investment plans of people, if taking the time to take advantage of short-term investors in the stock market, you can buy some relatively inexpensive stock, but also get dividend income. As for the ex-dividend on the eve of which the specific point in time to buy, it is a very complex problem skills. In general, the transfer deadline, when the big city, yet uncertain, short-term investors, more so before the transfer deadline, those who do not want to transfer the short-term investors have to sell all the shares, the closer transfer period, selling out of the more short-term investors, so in principle, before the transfer deadline to 1 to 2 days or so, there may be to buy the stock price is relatively fit, but this situation must not be absolute. Because if we are optimistic about a stock, or a stock dividend is very attractive, but also the opposite phenomenon may occur, that is, the closer the transfer period, the investors buy the stock the more, and therefore, Zhang Sheng price range the greater, the investor must carry out a concrete analysis of specific situations, an appropriate dividend payout period in the trading of the furnace to master.
