Is the shareholder's dividend based on net profit or undistributed profit?

Shareholder dividends are based on undistributed profits. Net profit is shareholders' equity, but in order to ensure the reproduction in the next cycle, the enterprise will reserve the next part of the current net profit for production according to a certain proportion.

How to divide shareholders' dividends

1. First of all, it must be clear that each shareholder should decide the dividend ratio according to the proportion of the company's shares.

In addition, the dividends of regular companies are not divided according to the amount of net profit, but according to the needs of their own company development, part of the profits are used as the company's development funds, and the rest are used as dividends.

2. The key depends on your dividend distribution. But in any case, you have to decide how much money you want to share first, and then decide how much money you should share according to your share proportion.

What needs to be clear is that the premise of getting dividends is that enterprises can make profits. Therefore, whether an enterprise is profitable or not is very important. In view of this situation, it is not recommended to sign a dividend ratio agreement, and an agreement with fixed income can be signed.

When will shareholders pay dividends?

Dividend within two months after deliberation at the shareholders' meeting.

1. Dividends on stocks are generally paid automatically, and you don't need to operate them yourself.

2. Dividend time is generally announced at the same time as the semi-annual report and annual report, and implemented after being approved by the shareholders' meeting.

3. Generally, dividends are rarely paid when quarterly statements are published, and the tax deduction of dividends is automatically completed according to the length of shareholding.

4. You can participate in dividends as long as you buy and hold them on or before the published dividend "registration date". You can't enjoy dividends when you buy stocks after the ex-dividend date.

Forms of shareholders' dividends

Generally speaking, shareholders can realize the dividend right in three forms:

1. Cash distribution based on the profits of listed companies in the current year.

2. Distribute new shares with the profits of the company in the current year.

3. Convert the company's surplus reserve fund into share capital.