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Bank stocks are a relatively stable investment variety, and their stock prices fluctuate less, but long-term investments still have certain returns. This article will explain how to make money by buying bank shares, the dividends of bank shares, and whether you need to pay taxes after dividends.
1. How to make money by buying bank stocks.
There are two main gains** from the purchase of bank shares: one is the capital gains from the share price**, and the other is the dividend income from bank dividends.
1.Capital gains.
Capital gains are the gains that investors receive when buying and selling** due to fluctuations in stock prices. The capital gains on the purchase of bank shares are mainly derived from the bank's share price**. Depending on the market trend and their own risk tolerance, investors can choose to sell bank stocks at the right time** to obtain capital gains.
2.Dividend income.
Dividend income is the dividends paid by banks to shareholders during the period when investors hold bank shares. In general, large banks have higher dividend yields because they are able to provide more returns to shareholders through stable operations and earnings. Investors can choose to hold bank stocks for stable dividend income based on their needs and risk tolerance.
Second, there are several points in the general dividend of bank stocks.
The percentage of dividends paid out to bank stocks varies from bank to bank, depending on factors such as the bank's profitability, business development needs, and shareholder return plans. In general, large banks have higher dividend yields, while some smaller or underperforming banks may reduce or eliminate dividends.
Historically, large banks have typically had dividend yields above 5%. For example, Bank of China has a dividend yield of around 5%, ICBC has a dividend yield of around 6%, and China Construction Bank has a dividend yield of 5About 5%. However, this does not mean that investors will be able to reap these yields by buying bank stocks, as stock price fluctuations and other factors may affect investors' actual returns.
In addition, investors need to be aware that the bank's dividend policy may change at any time. Therefore, before investing in bank stocks, investors are advised to carefully study the bank's financial statements and performance, as well as understand the bank's dividend policy and dividend history.
3. Is there any tax after dividends?
In China, the tax policy for dividends is as follows:
1.For individual investors, the dividend income obtained from listed companies is subject to individual income tax according to the item of "interest, dividends and bonus income", and the tax rate is 20%. At the same time, according to the Individual Income Tax Law of the People's Republic of China, resident individuals are also required to pay individual income tax on dividends and dividends obtained from abroad, with a tax rate of 20%.
2.For institutional investors, such as enterprises, public institutions, social organizations, etc., the dividend income obtained from listed companies does not need to pay enterprise income tax. However, these institutional investors are required to file their own tax returns according to the actual situation.
It is important to note that tax policies are subject to change at any time. Therefore, investors are advised to carefully understand the relevant tax policies and consult professional advice before investing in banking stocks.
In conclusion, making money by buying bank stocks requires paying attention to factors such as market trends and bank fundamentals. At the same time, investors also need to understand the bank's dividend policy and dividend history, as well as tax policies. Only by fully understanding this information and making informed investment decisions can you achieve a better return on investment.
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