Dividends are directly proportional to the stock price, what is the difference between dividends and

Dividends are proportional to ****.

Usually the dividend is high and the stock price rises; Dividends are low, stock prices are down. Dividends come from the company's after-tax net profit, and the increase in the company's net profit only provides the possibility for dividend distribution, not an increase in profit, and dividends must increase. In order to rationally use profits to expand reproduction and return shareholders to pay dividends, the company has formulated a certain dividend policy.

The dividend policy reflects the company's business style and development potential, and different dividend policies have different impacts on dividend income in each period. In addition, the way a company pays dividends (e.g., cash dividends, ** dividends, or dividends at the same time as the shares) can also have an impact on stock price fluctuations. One of the purposes of investing** is to receive dividends, so the period of the greatest stock price volatility is between the announcement of the company's distribution plan and the ex-dividend and ex-rights of the company.

Dividends and share prices are not necessarily proportional.

Dividends are the benefits that a company gives to investors for a certain period of time, mostly in the form of cash. Companies need a relatively stable dividend policy that allows investors to have a predictable and sustainable outlook. In layman's terms, let's say a company usually pays 10% of the dividend, and if there is a particularly good year, the dividend will basically remain around 10%, because you can't predict the future form.

If dividends fluctuate too much, investors come across as unstable.

There are many factors that can cause stock prices to fluctuate. The company's repurchase or additional issuance** can cause the stock price to fluctuate up and down. Since the company's earnings vary and dividends are roughly the same each year, the amount of money the company spends on buybacks** is also different, which causes fluctuations in the stock price.

Typically, though, rising dividends give investors the impression that the company has a good outlook; Declining dividends can give investors the impression that the company is unable to pay its dividends. Therefore, dividends and stock prices rise and fall in roughly the same direction, but not necessarily in the same proportion.

You have to understand what dividends are Dividends are clear and say that you are an investor The company you invest in makes money Of course he wants to give you a return This is the dividend **** The higher the level of profitability of the company The higher the level of profitability The higher the level of profitability The higher the amount of money that the company distributes to investors.

Summary. Hello Difference Between Dividends and Interest: Dividends are the interest that flows in the market, while the usual interest refers to the interest of banks in a market economy.

What is the difference between dividends and interest.

Hello Difference Between Dividends and Interest: Dividends are the interest that flows in the market, while the usual interest refers to the interest of banks in a market economy.

Dividends are dividends, and interest is the financing of banks.

Interest generally refers to the income obtained from various bonds, including cash, currency in the form of valuable**, **bonds, credit bonds, etc., dividends generally refer to the reinvestment of retained earnings, profit distribution, liquidation distribution, etc., in some special circumstances, interest and dividends are more difficult to distinguish and determine, but in most cases can be determined according to their nature, calculation methods, etc.

In general, the difference between interest and dividends is: (1) different meanings, (2) different influencing factors and calculation methods, (3) investment benefits and repayment methods, and (4) different income.

Dividends are cash dividends.

The dividend yield is the ratio of cash distributed to earnings per share.

Dividend yield Cash dividend per share Earnings per share 100%.

That is, the percentage of earnings per share for a year is the dividend yield.

It represents how much money is really distributed to investors in a year's best business results.

The higher the dividend yield, the higher the dividend content, and the more benefits investors get.

Companies that insist on high dividend yield distributions are best compared to bank deposits, and many companies have outperformed bank deposits over the same period in terms of dividend income.

When comparing returns with other investment methods, it depends on the stock price.

Take the dividend of 100% of the stock price and compare it with the bank interest rate or other investment income to be able to judge the actual level of return on the investment.

Assuming that the stock price is relatively stable, there are many ** certain periods, and the income can exceed the bank deposit a lot, so we say, ** investment is one of the important investment methods.

If the value stocks in the period with income advantages catch up with the bull market in the later stage, they may obtain excess returns, which is the charm of the first investment, which is not possible with bank fixed deposits.

Dividends, usually the stock price will, the reason is often the ex-rights and ex-dividends of listed companies, but dividends will only affect the stock price in the short term, and the long-term rise and fall is not determined by the call of dividends, but by factors such as supply and demand, policy, and company performance. The ** of the dividend share price is really just a superficial phenomenon. In fact, the company treats a portion of the growth as a dividend to investors.

In dividends, the investor receives the same dividend as the share price, so the total equity of the investor remains the same.

The role of dividends.

After the dividend, the total equity of the investor remains the same, so on the surface, the dividend is meaningless to the investor, but in fact, the stock rolling bridge price after the dividend is usually **, the investor can buy the listed company at a lower **, and the dividend and cash of the investor after the dividend can be used to reinvest, producing a compound interest effect, so as to get more returns.

The board of directors proposed a distribution plan - approved by the general meeting of shareholders - dividends and shares. From the point of view of this process, of course, there is a dividend first, and then the dividend yield can be calculated based on the stock price.

Dividends, also known as dividends and bonuses, refer to the portion of the retained earnings that a joint-stock company distributes to shareholders.

The dividend yield is the ratio of the total dividend payout in a year to the current market price. Annual dividends expressed as a percentage of last sales, which is a simplified form of return on investment. The dividend yield is the ratio between the dividend and the ****.

Dividends are dividends paid by listed companies to shareholders. The dividend yield is the ratio between the dividend and the ****. In investment practice, dividend yield is one of the important yardsticks to measure whether a company has investment value.

The significance of dividend yield Dividend yield is an important reference criterion for selecting income type, if the annual dividend yield exceeds the 1-year bank deposit rate for many years, then this ** can basically be regarded as income type**, the higher the dividend yield, the more attractive. Dividend yield is also one of the criteria for selecting other types**. The dividend yield is determined not only by the level of dividends and dividend payout rates, but also by the stock price.

For example, if the stock price of A is 10 yuan and the stock price of B is 20 yuan, and the two companies also pay dividends per share, the 5% dividend yield of company A is obviously more attractive than that of company B.

Dividends: Dividends are paid in the form of dividends, usually distributed to shareholders by the company with newly issued treasury shares or a part of the treasury shares as dividends instead of cash. **Dividends are transfers between different items in the shareholder's equity account and have no impact on the company's assets, liabilities and total shareholders' equity.

Dividend yield: It is the ratio between dividends and dividends, and in investment practice, dividend yield is one of the important yardsticks to measure whether a company has investment value.

The significance of dividend yield Dividend yield is an important reference criterion for selecting income type, if the annual dividend yield exceeds the 1-year bank deposit rate for many years, then this ** can basically be regarded as income type**, the higher the dividend yield, the more attractive.

Dividend yield is also one of the criteria for selecting other types**. The dividend yield is determined not only by the level of dividends and dividend payout rates, but also by the stock price.

For example, if the stock price of A is 10 yuan and the stock price of B is 20 yuan, and the two companies also pay dividends per share, the 5% dividend yield of company A is obviously more attractive than that of company B.

It is best for investors to have some preliminary understanding before entering. In the early stage, you can use a **treasure mobile phone** software to see, there are some ** basic knowledge materials that are worth learning, and you can also establish your own set of mature ** knowledge and experience through the relevant knowledge. Happy investing!

= Expected Dividends Bank Rate.

The size of the expected dividend is determined according to the operating conditions of the listed company, the dividend is the dividend to the shareholders of the listed company after making money, and the expected dividend is the investor's dividend on the possible future dividend amount of the listed company, which involves the expected dividend yield, which is the investor's possible dividend ratio of the listed company in the future, so generally speaking, the expected dividend is high if the business is in good condition, and the reverse is low.

There is also the factor of bank interest rates.

The relationship with expected dividends is not necessarily proportional or inverse.

Because the situation of each ** is different.

Generally speaking, before the announcement of the interim results forecast in June and July, some ** with high dividends, their trend will be relatively upward, such as Wuliangye. Gree Electric and so on, these high-quality blue chips.

However, with the landing of dividends, the stock price will also go downhill from there. In short, in terms of big A. Dividends are not a very exact good news, because it generally needs to be filled in the right, and for some ** with poor quality, the process of filling in the right is very long.

**Dividends are at a loss**.

Dividends are the dividends that listed companies give to shareholders after making money, and the dividend yield is the ratio of the total amount of dividends to the market value, and the expected dividend yield is the proportion of investors to the possible future dividends of listed companies.

A person holds 1,000 A shares with a par value of $100 per share and an expected dividend yield of 3%. When all other conditions remain unchanged, and the interest rate on bank deposits is reduced from 2% to 2% during the same period, his ** will:(

A appreciation of 35,000 yuan b appreciation of 30,000 yuan c depreciation of 25,000 yuan d depreciation of 20,000 yuan.

Analysis: The value of b** moves inversely to its yield (bank deposit rate).

The value of ** = the profit of ** at the discount rate (here the discount rate is the bank deposit rate).

The interest rate is **Total value = 100 * 1000 * 3% yuan.

When the interest rate is 2%, the total value of ** = 100 * 1000 * 3% 2% = 150,000 yuan.

So ** appreciation of 30,000 yuan.

Value is a form of virtual capital that has no value in itself. Essentially, it is simply a certificate of ownership. The reason why it can be valuable is because the holders, that is, shareholders, can not only participate in the general meeting of shareholders and exert influence on the business decisions of the joint-stock company, but also enjoy the right to participate in dividends and dividends and obtain corresponding economic benefits.

In the same way, with a certain number of units, the greater the economic benefit that its holder can obtain, the higher the **.

Liquidation refers to the actual value represented by each share in the event of liquidation after the bankruptcy or closure of a joint-stock company. Theoretically, the liquidation per share should be consistent with the book value of the company, but when the enterprise is liquidated, its property value is calculated based on the actual sales, and when the property is disposed of, its selling price will generally be lower than the actual value. Therefore, the liquidation of ** will not be consistent with the net value of **.

The liquidation of ** is only used as the basis for determining the liquidation of the joint-stock company due to bankruptcy or other reasons due to the loss of legal personality, and it has no significance in the process of issuance and circulation.

This mainly depends on the operation of the enterprise and its gravitational pull. If the business is running well, its profitability will be high, and if the profit is high, its stock price will be born accordingly, and its expected income will also increase, and then the stock price may rise.

On the contrary, it is still the same, so the investment is still mainly based on expectations. It is to let the management of this industrial enterprise force the management to make some correct choices, otherwise its stock price will be strong.

Why are the fundamental factors that determine **** expected dividends and bank deposit rates?

This statement is not very clear, it should be said that it is based on the dividend discount model DDM (discounted dividend model), that is, the present value of the discounted dividend received in the future, where the discount rate is the expected return requirement for the note, which is related to the risk-free interest rate, that is, the bank deposit rate. So **** is related to these two basic factors.

Published on 2012-02-04 The copyright belongs to the authorKevin Zhou (author).

En DDM is only a theoretical method, and it is difficult to use in practice. On the one hand, dividends depend on the decision of the management and are difficult to estimate accurately; On the other hand, it is also very difficult to choose the discount rate.

sullivan zhou

I think there are certain limitations when using DDM valuation, and it should be for some listed companies with stable dividends that can be used to make model estimates. However, it may indeed be aimed at listed companies in the United States, which are more mature.