On February 18, China Railway Group Limited(601390) said in response to investors’ call for “actively increasing the proportion of cash dividends” on the SSE e interactive platform, “The profit distribution proportion of the company has continued to increase steadily, and the distribution base has been increasing. The dividend ratio has gradually increased from 15% in 2013 to 17.5% in 2020. The total dividend has increased from 1.406 billion yuan to 4.423 billion yuan. So far, the cumulative dividend has been about 25.775 billion yuan.”
The disclosure of the annual report of Listed Companies in 2021 began, and the dividend plan has become one of the hot spots in the market. Investors have shouted for listed companies to increase dividends through the interactive platform. According to statistics, as of the press release of the reporter on February 18, 12 A-share listed companies have issued annual reports for 2021, of which 7 have announced dividend plans, with a total planned cash dividend amount of 904 million yuan.
more than 880 investor questions
dividends to listed companies
According to the Shanghai and Shenzhen Stock Exchange interactive platform, as of February 18, there have been more than 880 questions and answers about dividends on the interactive platform this year.
According to the reporter’s combing, among the above seven companies that disclosed the annual dividend plan, four had a cash dividend ratio of more than 30%, of which Shandong Wohua Pharmaceutical Co.Ltd(002107) had the highest cash dividend ratio of 91.85%. In terms of dividend yield, calculated by the closing price on February 18, Shandong Wohua Pharmaceutical Co.Ltd(002107) dividend yield is also the highest, at 3.78%.
In addition to Shandong Wohua Pharmaceutical Co.Ltd(002107) , the medium-term large-scale dividend plan in 2021 recently disclosed by Gree Electric Appliances Inc.Of Zhuhai(000651) has also attracted market attention. The company announced that the board of directors of the company reviewed and approved the 2021 interim profit distribution plan and planned to “pay 10 yuan to all shareholders”, with a total cash dividend of 5.537 billion yuan. The total dividends accounted for about 70% of the net profit in the first half of Gree Electric Appliances Inc.Of Zhuhai(000651) 2021.
“The large proportion of A-share dividends is not unique this year, but an important market change in recent years. The large proportion of cash dividends adopted by listed companies not only emphasizes the respect of listed companies for the interests of shareholders, but also reflects the strength of listed companies themselves.” Referring to the high proportion of dividends paid by listed companies, Chen Li, chief economist of Chuancai securities and director of the Research Institute, said in an interview with the reporter of Securities Daily that the cash dividend shows that the cash flow of listed companies is healthy to a certain extent, their own financial situation is good, and the reliability of financial reports is higher.
“The large amount of dividends paid by listed companies, on the one hand, is related to the operating performance of relevant enterprises. On the other hand, it also reflects the good trend that listed companies actively fulfill their social responsibilities and pay attention to the rights and interests of small and medium-sized investors. This is also a microcosm of the development of China’s capital market towards high quality.” Wang Huiqing, a postdoctoral of the Bank Of China Limited(601988) Research Institute, said in an interview with the reporter of Securities Daily.
Investors still need to treat the high proportion of dividends rationally. “Companies willing to take out large amounts of cash for dividends are generally in a mature industry. Many companies have less demand for business expansion and reinvestment, and do not need to hold a large amount of cash. The business of enterprises in the mature period is stable, and the performance growth rate will not be as high as that of enterprises in the growing period. Investors should have a reasonable understanding of such enterprises.” Chen Li said.
“For investors, we should not only see the appearance of dividends, but also take the stability and growth of enterprises as an important investment reference. In particular, small and medium-sized investors need to actively improve their professional investment literacy and investment level, establish the concept of value investment and reduce irrational behavior.” Wang Huiqing said.
53 companies released
return to shareholders in the next three years
In recent years, with the encouragement and guidance of supervision, the dividend of listed companies has become more and more standardized, and the dividend enthusiasm has been improved. According to the announcement of listed companies, as of February 18, 53 listed companies have released three-year shareholder dividend return plans from 2022 to 2024.
“It is an important way for a listed company to pay dividends in an adequate way. It is also an important way for a listed company to establish a good social responsibility.” Wang Huiqing said that in addition, listed companies timely repay the majority of small and medium-sized investors and release a positive signal of stable business expectations to the market, which is also conducive to promoting the healthy and orderly development of the capital market.
Looking forward to the dividend characteristics of listed companies this year, Chen Li believes that it is expected that more listed companies in the traditional manufacturing industry will pay dividends this year. On the one hand, the industry of such enterprises is relatively mature and tends to pay dividends rather than reinvest; On the other hand, the overseas epidemic was serious last year. With the good control of the epidemic in China, the start-up of manufacturing industry was not affected, and foreign exports increased significantly last year. These enterprises will also consider dividends after obtaining excess profits.
Wang Huiqing said that under the general environment encouraged and guided by regulators, the awareness of dividends of listed companies has increased as a whole, and the enthusiasm of enterprises with steady growth in operating performance will continue this year.
