Dividend Selection

Definition

In addition to directly distributing dividends to investors, listed companies also have two dividend methods: dividends to choose stocks, and stocks to choose dividends. Dividend stock selection: Listed companies pay dividends by default. Investors can choose to charge interest or convert the dividends into stocks according to the conversion price in the announcement; dividend selection: Listed companies distribute stocks by default, and investors can choose to receive bonus shares or choose The stock is converted into interest based on the conversion price in the announcement.

After the settlement on the day before the ex-rights day, if the client holds the shares of the listed company, they will all participate in the selection of stock dividends.

Announcement date: The time when the board of directors announces the dividend information, including the amount of the dividend, the closing date and the dividend payment date.

Ex-date: The stock price on the ex-date is ex-divided. Therefore, investors who buy Hong Kong stocks that require dividends on this day will no longer enjoy the dividend rights. At the same time, Hong Kong stocks sold on the ex-date for dividends can still enjoy the dividend rights.

Registration date: The Hong Kong market implements a T+2 settlement system. Investors who buy Southbound Stock Connect stocks on T day can only obtain the rights and interests of the relevant securities after the settlement is completed at the end of the T+2 day. Therefore, investors who bought the shares through Southbound Stock Connect on the trading day before the registration date of the Hong Kong stocks cannot enjoy the dividend.

Transfer deadline: refers to the deadline for the listed company to update the register of shareholders. Those who hold the company’s physical stock certificates must complete the shareholder transfer procedures before the deadline.

Dividend payout date: The dividend payout date is the day when the dividend is paid. Generally, the dividend payout date for Hong Kong stocks is between 1 week and 3 months from the ex-date.