How US stocks pay dividends

Dividends in U.S. stocks mean that U.S. companies pay attention to shareholder returns, and many stocks distribute dividends every quarter. In the U.S. stock market, companies usually pay dividends to shareholders in two ways: cash dividends and stock dividends.

1. Stock dividends

In some cases, a company may choose to pay dividends in the form of stock. When a company declares a stock dividend, it issues a percentage of additional stock to shareholders instead of paying it in cash. Shareholders can choose to keep these shares or sell them.

2. Cash dividends

This is the most common way to pay dividends. When a company decides to pay a cash dividend to its shareholders, it pays the shareholder a fixed amount of cash per share based on the number of shares the shareholder owns. Shareholders can choose to receive cash dividends directly or reinvest them in the company’s stock.

US stock dividends are distributed on a quarterly basis, and the only way to distribute dividends is in cash.

The cash for US stock dividends is 50%-70% of the profits earned by listed company Q;

There are four important dates for US stock dividends, which are the announcement date, the ex-right date Q, the record date, and the interest payment date. The interest payment date is the day when the cash dividend is obtained;

US stock dividends need to be taxed. The tax rate is determined according to the income. There are three levels: 0%, 15%, and 20%. The higher the income, the more tax you need to pay;

Non-U.S. tax citizens are subject to a 10% dividend tax.

In general, it is very common for listed companies to attract investors through dividends in the US stock market. Nature is no exception. It is worth noting that dividends for US stocks require ex-shares and ex-dividends. Common stock can enjoy dividends, while preferred stock. Generally do not enjoy dividends. A joint stock company can only distribute dividends when it makes a profit. If you want to buy U.S. stocks, you can directly open a U.S. stock account with a securities company or open an account with a well-known domestic U.S. stock agent.