How to deal with the relationship between SOE dividend and promotion of investment at the enterprise level, and to seek the SOE dividend ratio that can not only promote investment efficiency but also avoid investment risks is the key content of the current state capital operation budget system reform.This paper takes the Shanghai and Shenzhen A-share state-owned listed companies from 2008 to 2019 as samples, and conducts an empirical analysis on the investment effect of SOE dividend based on the panel fixed effect and Probit model. The results show that there is a U-shaped relationship between the SOE dividend ratio, inefficient investment and investment risk.When the dividend ratio is less than 38.89%, it can effectively improve the investment efficiency and reduce the investment risk. When the dividend ratio exceeds 38.89%,with the continuous improvement of dividend ratio, the investment efficiency decreases, and the investment risk effect is significant. In addition, based on enterprise heterogeneity, the study shows that the impact of SOE dividend on firm investment varies with the size, the administrative level, the technical characteristics and the degree of competition of the industry.Therefore, the government needs to give full consideration to the specific conditions of different SOEs and formulate the SOE dividend ratio in a targeted manner to improve the accuracy of the policy.