This paper applies to the knowledge related to stock dividends, investment strategies, and basic stock market analysis. It mainly studies the impact of stock dividends on stock prices in the Chinese financial market environment. The article cites the findings of the empirical analysis of cash dividends of Chinese listed companies (2003) written by Liu Shulian and Hu Yanhong on the formulation of cash dividend strategies of listed companies. The article also relies on the empirical analysis of

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... sh dividends of Chinese listed companies (2000) by Qin Jiangping and Wang Huaidong and the analysis of dividend policy of Chinese listed companies (2001) by Yuan Hongqi as the infrastructure for the analysis. It is concluded that stock dividends are beneficial to stock price appreciation and firm growth in the long run. In this process, the stock market can be gradually strengthened by the profitability of listed companies, and investors can benefit from stable dividends from listed companies, thus reducing speculative behavior.